The main cause for international trade
Answers
Answer:
Reason for Trade #1: Differences in Technology
Advantageous trade can occur between countries if the countries differ in their technological abilities to produce goods and services. Technology refers to the techniques used to turn resources (labor, capital, land) into outputs (goods and services). The basis for trade in the Ricardian model of comparative advantage in Chapter 2 "The Ricardian Theory of Comparative Advantage" is differences in technology.
Reason for Trade #2: Differences in Resource Endowments
Advantageous trade can occur between countries if the countries differ in their endowments of resources. Resource endowments refer to the skills and abilities of a country’s workforce, the natural resources available within its borders (minerals, farmland, etc.), and the sophistication of its capital stock (machinery, infrastructure, communications systems). The basis for trade in both the pure exchange model in Chapter 3 "The Pure Exchange Model of Trade" and the Heckscher-Ohlin model in Chapter 5 "The Heckscher-Ohlin (Factor Proportions) Model" is differences in resource endowments.
Reason for Trade #3: Differences in Demand
Advantageous trade can occur between countries if demands or preferences differ between countries. Individuals in different countries may have different preferences or demands for various products. For example, the Chinese are likely to demand more rice than Americans, even if consumers face the same price. Canadians may demand more beer, the Dutch more wooden shoes, and the Japanese more fish than Americans would, even if they all faced the same prices. There is no formal trade model with demand differences, although the monopolistic competition model in Chapter 6 "Economies of Scale and International Trade" does include a demand for variety that can be based on differences in tastes between consumers.
Reason for Trade #4: Existence of Economies of Scale in Production
The existence of economies of scale in production is sufficient to generate advantageous trade between two countries. Economies of scale refer to a production process in which production costs fall as the scale of production rises. This feature of production is also known as “increasing returns to scale.” Two models of trade incorporating economies of scale are presented in Chapter 6 "Economies of Scale and International Trade".
Reason for Trade #5: Existence of Government Policies
Government tax and subsidy programs alter the prices charged for goods and services. These changes can be sufficient to generate advantages in production of certain products. In these circumstances, advantageous trade may arise solely due to differences in government policies across countries. Chapter 8 "Domestic Policies and International Trade", Section 8.3 "Production Subsidies as a Reason for Trade" and Chapter 8 "Domestic Policies and International Trade", Section 8.6 "Consumption Taxes as a Reason for Trade" provide several examples in which domestic tax or subsidy policies can induce international trade.
Answer:
The main cause of international Trade is needs
Explanation:
Because let me set you an example I have a two erasers and you have two pencils now I am in a classroom in which I have stressed to write but I don't have pencil and now have don a mistake so you want an eraser so this it you want an eraser and I want your pencil that's the thing the need we don't have things so we will ask to somebody else that's the explanation