Есе ” What is international trade? Why countries trade with each other (reasons) “

International trade is the historical first form of international economic relations, which is the exchange of products and services between states. For the participation of the national economy in international trade is a form of foreign trade.

In one country there are gold deposits, in another it is not – this is already an object, which means an advantage over another country. But in that country there is also something valuable and that country wants to get it. These relationships are objective and universal.

If you do not trade, then now some countries would be beaten in the Stone Age. Let’s take a small country that has neither power plants nor oil and gas. How can it get energy? First, it must sell something for foreign currency, and with the proceeds it must buy oil or energy, so trade turns out.

Countries are forced to trade with each other only if one country does not have something very necessary that is in another country.

Thus, trade between countries is carried out in order to meet the needs of the country and the population in goods that are in insufficient quantities due to the impossibility of production, its unprofitableness or lack of the necessary resources for production.

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