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Why do countries specialize in certain goods, then trade with others get 10 points

what they need? *
transportation costs are lower than they were a century ago.
Greater investment of capital goods increases productivity.
People have limited resources to satisfy unlimited wants.
Resources are not evenly distributed among countries.
What is voluntary trade?
10 points

User Fangxing
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1 Answer

4 votes

Answer:

Resources are not evenly distributed among countries.

Step-by-step explanation:

Each countries are located in different geographical location from one another. This resulted in different types of climate and environment that give each countries with different resources.

For example, Let's examine Brazil and United States.

Brazil located near the equator line which make that country significantly warmer compared to united states. Because of this, a wide variety of fruits and vegetables able to grow easily in Brazil. This lead to a situation which make Brazil able to produce fruits/vegetable related product in a cheaper and more efficient manner compared to United States.

Knowing this, Brazil focused its production and specialize in fruits/vegetables and sell them to united states.

User PaulP
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4.4k points