Why do countries trade goods and services?
(1 point)
Responses
because they want to reduce interdependence
because they do not have all the goods and resources they need
because they want to help other countries grow
because they want to protect domestic industries from competition
All of the above reasons contribute to why countries trade goods and services. Each country has its own unique resources, capabilities, and needs. By engaging in trade, countries can fulfill their domestic needs by importing goods or resources that are not available or scarce domestically. This helps reduce interdependence on a single country or region for essential goods. Trade also enables countries to support the growth and development of other nations by exporting goods and services, which can boost their economy. However, it is also important to protect domestic industries from excessive competition, as unfair competition can lead to negative economic consequences such as unemployment or loss of industries.
1 answer only
because they do not have all the goods and resources they need.
Which of the following is a way to increase economic development?
Investing in education and skill development is a way to increase economic development.
Which of the following are examples of trade barriers? Select the three correct answers.
(1 point)
Some examples of trade barriers include:
1. Tariffs: Taxes imposed on imported goods, making them more expensive and less competitive compared to domestically-produced goods.
2. Quotas: Limitations imposed on the quantity of imported goods that can enter a country, often to protect domestic industries from competition.
3. Embargoes: Complete bans on trade with specific countries or specific goods, usually for political or security reasons.
4. Subsidies: Financial aid or incentives given to domestic industries, which can give them an unfair advantage over foreign competitors.
5. Technical barriers to trade: Regulations, standards, or requirements for imported goods that can be difficult for foreign companies to comply with, restricting their access to the market.
Therefore, the correct answers are tariffs, quotas, and embargoes.