Basically, nations trade: Question 10 options: in order to stockpile goods in case of national disaster or emergency. in order to maintain peaceful relationships with neighboring countries. because no nation's economy can produce all of the goods and services that it needs. because most nations tend to have yearly surpluses of goods.

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Alicia White

Business

8 February, 06:17

Basically, nations trade: Question 10 options: in order to stockpile goods in case of national disaster or emergency. in order to maintain peaceful relationships with neighboring countries. because no nation's economy can produce all of the goods and services that it needs. because most nations tend to have yearly surpluses of goods.

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Aubrey · Answer 1

because no nation's economy can produce all of the goods and services that it needs.

Explanation:

In simple words, International trade refers to the exchange of goods and services that occurs between the nations around the world for over all welfare and development of world economy. One of the major reasons behind such exchange is the opportunity cost of producing the same good differs among nations significantly.

For instance, a product that belongs to the labor intensive industry could be produced in India easily while as technology intensive good is feasible in America. Also due to difference of availability in natural resources some economies might not be able to produce some goods altogether.