Reasons why countries trade with one another

Foreign trade is the buying and selling of goods and services between two or more countries.

This can take place between individuals, companies from different countries

Reasons why countries trade with one another.

• Due to unfavorable climatic conditions that exist in different countries.
• In order to obtain supplement good from other countries.
• In order to foster political friendship.
• To widen countries market for goods and services.
• To sell the surplus goods and services to other countries.

• To import raw material for local industries that does not exist in the origin country.
• To improve the standard of living in the country.

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