International trade exists because countries
A) can make themselves better off through trade.
B) want to be neighborly with each other.
C) want to be political allies.
D) want to improve diplomatic relations with each other.
E) want to avoid war with each other.

Question

Quizplus · Accepted Answer

International trade exists because countries can make themselves better off through trade. By specializing in producing goods and services that they are relatively more efficient at producing, countries can increase their economic welfare by trading with other countries. This allows them to benefit from lower costs, increased competition, and access to a wider range of goods and services. Other reasons such as political alliances, diplomatic relations, and avoiding war may play a role in international trade, but they are not the primary drivers of trade.

International Trade Exists Because Countries