The fundamental reason countries engage in trade is that

Question

Quizplus · Accepted Answer

The fundamental reason countries engage in trade is to improve their standard of living. By trading with other countries, they can access goods and services that they cannot produce themselves or can produce at a higher cost, and specialize in producing goods and services they are more efficient at, thus resulting in a more diverse and prosperous economy. Domestic markets may shrink in some cases, but this is not the primary reason for trade. Special interest groups may benefit, but this is not the overarching reason for countries to engage in trade. Saving resources is a potential outcome of trade, but it is not the core reason.

The Fundamental Reason Countries Engage in Trade Is That