Why Countries Trade Case Study

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Why do countries trade? There are many reason why countries trade with each other, such as on their own, maybe they do not have the resources, or their country do not have means to compensate their needs and wants of the consumers. Developing resources that can be import or export to benefits the economic sources can satisfy the need of the trading countries. Moreover, good and services are import and export for various reason such as its cheaper, better quality, or simply easy to access at a lower cost. International trading is the main source of global economy and development of a more modern industrialized world.
The advantages of trading is to bring a number that will be valuable and benefits to a country comparative advantage, encourages …show more content…

This theory states that “the holdings of a country’s treasure primarily in the form of gold constituted its wealth”. The main period of the concept of Mercantilism is from 1500 to 1800. However, this theory mainly focus on the exporting and importing activities, the benefits of gold, countries wealth is based on the collection of the gold, as well as the government restrictions on the import and export. The information stated stress the importance of export activities of trade surplus, in order to avoid trade deficit, which result in trade restrictions or acts as trade barrier …show more content…

The international trade could vast interlock system tradeoffs, therefore specialize in import and exporting minimize the cost, while producing the most efficient for either country. (Fletcher,

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