Final answer:
International trade mainly occurs due to differences in the prices of products internationally, which are a result of various production strengths and resource endowments of different countries, leading to comparative advantages.
Step-by-step explanation:
International trade is a key component of global economic activity, allowing countries to exchange goods and services across national borders. One of the primary reasons that international trade occurs is because of differences in production capabilities, resource availabilities, and costs across different countries that create variations in prices. This concept is comparative advantage, where countries tend to specialize in the production of goods and services that they can produce more efficiently than other nations.
Beyond economic reasons, international trade policies and agreements can also play a role in political and environmental considerations. For example, the desire to prevent overreliance on imported products for national security purposes or to maintain certain environmental standards can affect how a nation engages in trade. Ultimately, international trade increases consumer choice, promotes efficiency and competition, and can lead to better quality and lower prices for goods and services.
The correct answer to the question of why international trade occurs is b. Of differences in the prices of products internationally. This is primarily because each country has different strengths and weaknesses in terms of production and resource endowments, leading to a variance in prices and encouraging countries to trade with one another.