Why Is Trade Important?


7 Answers

Nathaniel Hobby Profile
Nathaniel Hobby answered
Trade can be explained as the exchange of goods between those who produce them (the producers) and those who consume them (the consumers).

Trade is important as it is a vital interaction for every country in the world. Without trade, countries would have to provide their own resources for every aspect in their daily life. Take for instance items such as food, clothing and technology. This would mean that a country is completely self-reliant which is difficult as the resource capacity for each country is limited. This is a particular issue for developing or less developed countries that cannot fully provide for themselves due to a lack of technology or education. However, even a developed country would struggle if it had to be fully self-reliant. Look around the room you are in and pick up an item, it is very unlikely it will be made in the country you are in. Trade is also used within a country. For instance, a small farm may provide produce for a local shop.

Trading is also important as it contributes to the economy of a country. For instance, one country produces a good and then sells it to another country. This provides income which can then be used for development within the country such as by funding education and the emergency services. Trading also adds to the economy as it provides millions of jobs across the globe. Trade is also important as countries may import goods more cheaply than they can produce on their own.

A particularly important part of trade is the idea of fair trade. Fair trade enables that all those involved in the trading network have fair wages and good working conditions. This is particularly important for those in less developed countries that work in unsafe conditions on low wages but the goods they produce are then sold for a high price in the country that gains them.
Anonymous Profile
Anonymous answered
Trade is important because a country may need resources it can't provide for itself, or it's cheaper to import than to produce locally. And trading it's resources to other nations that can't produce them means that it's one big cycle where everyone trades until they all have what they need while making money by selling what they don't need. They do it for the development of the country so that people can get food, clothes, necessities people need that their own country does not have access to, and to do business with other countries through trade. Trade imports ideas, crafts, technologies and philosophies as well. Empires that succeed, takes over the best qualities from the neighboring empires. It also keeps good relations with rival empires. Trade is better than going to war with another empire.
Anonymous Profile
Anonymous answered
Trade is a very important industry in all parts of the world.Trade is the exchange of goods between those who produce them and those who consume them.Different countries produce different goods some for export and some for local use.Careful planning is needed to make sure that goods are produced cheaply and efficiently eg.
1.Right conditions (eg. Climate)
2.Raw materials are available (eg. Bauxite)
3.Capital/money to start production
5.Market(local and global)
Caribbean countries depend on international trading partners for the things they need but cannot produce.Trading currencies are often used for trade between different countries

This was all written by an 11 year old all from my brain hope it helps goodbye
abby  cerease Profile
abby cerease answered

trading is important because some countries do not have enough goods  and services to give their people so they depend on other countries or  other countries depend on them

Anonymous Profile
Anonymous answered
Because I have no clue...I have this question on a social studies test...I got it wrong

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