Final answer:
The United States trades with other countries to make use of comparative advantages, which leads to more efficient production and better allocation of resources. It also allows the U.S. to obtain goods that are cheaper to produce in other countries due to geographical reasons or other countries' absolute advantages.
Step-by-step explanation:
Even though the United States has abundant resources, it still engages in international trade for several reasons. A key reason is utilizing comparative advantage, which allows countries to specialize in the production of goods where they have a lower opportunity cost. This specialization leads to increased efficiency and a better allocation of global resources.
The concept of comparative advantage explains why countries benefit from trade even when they are capable of producing the goods within their own borders. It enables them to trade for products that would be more costly to produce domestically in terms of opportunity cost. Additionally, geography plays a role in trade because certain products can only be produced in specific climates or regions.
Although the United States has a large economy and could be self-sufficient in many ways, it benefits from trade because it can obtain products more cheaply from countries that have an absolute or comparative advantage in producing those goods. Furthermore, being part of international trade agreements like the European Union, where trade occurs without barriers such as tariffs and quotas, can enhance trade efficiencies for member countries. However, this does not apply directly to the United States, which is not a part of the EU.