Why do Nations trade?

Why do Nations trade?

No man is an island. This is also true with all the countries in the world. Each nation needs one another that’s why nations trade goods and services. Trading is a process of exchanging commodities by barter or selling.

Nations trade because they also need resources of other countries. Some countries specialize in making products which other country could not produce. Since they lack the product to support their needs, they trade to other countries.

Take for example the tropical countries. They are great exporters of fruits and rice. This is because the weather in tropical countries is best to grow fruits and rice. Unlike in western countries where there is snow. Fruits such as bananas, mangoes, and pineapples will never survive in freezing countries. To let them taste tropical fruits, they trade to other countries. On the other hand, their products such as cars, machines, and gadgets are not available in other countries because they lack resources and technology. These countries in return will also trade commodities and services which they need and want in order to sustain life.

There is no perfect country which means that a certain nation could not produce everything the world needs. They have to rely other resources from other nations. If they don’t trade, they will not survive. Trading is also one way to improve international relationship and camaraderie. It helps improve economy and tourism.

International trade also acts as a balancer. This aids in making the distribution equal. Each country can concentrate on the products they know they can produce best and rely the other resources which they don’t have from another country. This process makes people’s lives easier and international transaction smoother and harmonious. Also, nations will find it more beneficial because they can earn enough income if they export their products to other countries.

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