Why do countries trade goods and services?(2 points)

Question

Responses

because they do not have all the goods and resources they need
because they do not have all the goods and resources they need

because they want to reduce interdependence
because they want to reduce interdependence

because they want to protect domestic industries from competition
because they want to protect domestic industries from competition

because they want to help other countries grow

Answer 1

Countries trade goods and services primarily for the following reasons:

1. Because they do not have all the goods and resources they need: Different countries possess varying amounts and types of resources, technologies, and goods. Trade allows them to obtain what they lack and fulfill their needs or demands.

2. Because they want to help other countries grow: Trade can foster economic growth in both trading nations by allowing for specialization, enhancing production efficiency, and enabling access to larger markets. By engaging in trade, countries can support the economies of their trading partners as well.

The other options, such as reducing interdependence and protecting domestic industries from competition, are generally not the primary motivations for trade, as they often run counter to the benefits that international trade aims to achieve.