Question

In the global economy, countries export (send out) goods and services, and import (accept/bring in)

goods and services.
True
False

Answer 1

True

Step-by-step explanation:

International trade allows countries to expand their markets and access goods and services that otherwise may not have been available domestically. As a result of international trade, the market is more competitive. This ultimately results in more competitive pricing and brings a cheaper product home to the consumer.

KEY TAKEAWAYS

1. International trade is the exchange of goods and services between countries.
2. Trading globally gives consumers and countries the opportunity to be exposed to goods and services not available in their own countries, or more expensive domestically.
3. The importance of international trade was recognized early on by political economists such as Adam Smith and David Ricardo.
4. Still, some argue that international trade can actually be bad for smaller nations, putting them at a greater disadvantage on the world stage.