Final answer:
Sweden trades resources like wool and zinc that are abundant in the country with others that require them, following principles of absolute and comparative advantage. Scarcity influences international trade, as countries must decide how to allocate their limited resources. Sweden's position and rich resource base allow it to engage effectively in international trade.
Step-by-step explanation:
Countries such as Sweden trade natural resources that are abundant in their country with countries that need them. Sweden has a significant absolute advantage in certain resources, like iron ore, which has fueled its manufacturing sector. Countries like Finland and Norway also have abundant natural resources such as timber and oil, respectively, which they export to other countries in need. Comparative advantage is also a reason for international trade. This occurs when a country can produce a good at a lower opportunity cost than another, facilitating mutually beneficial trade. Scarcity of certain resources in some countries results in the need for international trade to obtain those scarce resources.
The concept of absolute advantage, seen where extracting oil in Saudi Arabia requires fewer resources compared to other countries, also underscores how geographic endowments can influence trade patterns. For instance, countries like the United States and its farmlands, or Guatemala and Colombia with their coffee-friendly climates, all trade based on their natural advantages. Sweden, with its history and geography, is situated favorably for trade with numerous European partners, and, as a result, has a substantive level of international trade. On the other hand, scarcity and economic decisions influence how countries utilize their resources and engage in trade based on what they can abundantly and efficiently provide.