Why do Nations Trade? Business & Finance Assignment Homework Help

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Trade allows countries to use national resources more efficiently and enables industries and workers to be more productive. Trade may even allow countries to achieve higher living standards and keep the cost of many everyday products low. Without international trade, most nations would be unable to feed, clothe, and house their citizens at current levels. In fact, some types of food would become unavailable, or obtainable only at very high prices. For example, in Brazil, where coffee beans and sugar cane are readily available, prices on these items would remain low. However, coffee and sugar could become luxury items in countries such as Canada.

  • Choose one item that is internationally traded (other than the example presented) and hypothesize what would happen if this item were no longer internationally traded.
  • Identify who has this product, describe how it is currently used, what its current benefit is, and what happens if it is now unavailable.
  • Be creative with the product you select; it does not have to be an everyday, common product!
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