Econ question

User Generated

Nyrk88

Economics

Description

Watch the video about trade below:

https://www.youtube.com/watch?v=xRJZWfqWcs0

*Write one page essay answering the question "why we trade".

You can find some additional useful information about opportunity cost and comparative advantage here:

https://www.youtube.com/watch?v=xx9xNJlPOJo

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Explanation & Answer

Hi, attached find the completed assignment. Give your feedback in case of anything that may require more attention, please. Thanks once more.

Running head: WHY WE TRADE

1

Why we Trade
Institutional Affiliation
Name
Date

WHY WE TRADE

2

Evidence of the existence of trade across territories can be traced back to over 9,000
years, although evidence of long distance trade perhaps existed earlier to the times of
domestication of pack animals as well as the invention of merchant ships. It is therefore not a
wonder that international trade today is at the center of our global economy as well as
responsible for the development and prosperity being enjoyed by the contemporary industrialized
world. We trade with each other in situations where, on our own, we have no capacity, or
resources, to satisfy our own needs as well as wants.

It is through the development and

exploitation of their resources that are scarce domestically that nations can produce a surplus,
which a can then be traded for what resources may require (Baldwin, 2008). It is as a result of
the trade that countries can benefit through specializing in producing goods and services which
they enjoy a comparative advantage as well as engaging in trade for goods they need.
Engaging in trade at the international level involves an exchange of goods, capital, and
also ...


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