Question

Which statement describes a benefit of international trade?

Chawalia is a South Asian nation with an agricultural economy specializing in production of aromatic rice. To increase production, the government introduces mechanized farming. This process increases the production of rice by 120%. The government begins exporting the surplus rice to Europe and the Americas. From then on, aromatic rice exports makes up 40% of Chawalia’s annual GDP. To further increase production, Chawalia formulates a program aimed at producing a minimum of 50 million tons of rice every year. It brings more land under cultivation. It conducts workshops and training sessions on good agricultural practices. It provides financing to farmers for buying farm equipment. As a result, more and more farmers practice mechanized farming, leading to a further increase in production. Soon, Chawalia has a 33% share of global rice production.

1.To increase production, the government introduces mechanized farming.

2. From then on, aromatic rice exports makes up 40% of Chawalia’s annual GDP.

3. It conducts workshops and training sessions on good agricultural practices.

4.Soon, Chawalia has a 33% share of global rice production.

Answer 1

Countries gain from exchange when trade enables each country to receive a higher price for exported goods and/or pay a lower price for imported goods. This leads to more efficient resource allocation and allows consumption of a larger variety of goods.International trade is where there is exchange of goods and services across International territories where in most countries this exchange represents a significant a share of gross domestic product(GDP). One of the most immediate benefits of this trade is lower costs to consumers

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