Resources are not distributed evenly.
Trade is necessary because resources are not distributed evenly across different regions or countries. Some areas may have an abundance of certain resources while lacking others. Trade allows countries or regions to specialize in the production of goods or services in which they have a comparative advantage, and then exchange those goods or services with others who have a different comparative advantage. This enables each region to access a wider variety of resources and goods than they would have otherwise, leading to increased efficiency and overall economic growth.
Why is trade necessary?
(1 point)
Responses
Producers create too much demand for goods.
Producers create too much demand for goods.
Resources are not distributed evenly.
Resources are not distributed evenly.
Consumers do not supply enough goods.
Consumers do not supply enough goods.
Resources are abundant everywhere.
1 answer