Question

2. The Hershey's Kiss is made from raw materials from different parts of the world. It is also distributed to people all over the world. Explain why global trade occurs.

Answer 1

Answer: The answers are provided below.

Explanation:

Global trade also known as international trade is the exchange of goods, and services across the international borders. Global trade represents an important share of the gross domestic product of an economy.

Global trade between countries lead to increase in a country's living standards, by providing employment opportunities and enabling consumers enjoy a greater variety of goods.

Furthermore, global trade increases competition and also lowers world prices, thereby providing benefits to consumers as a result of the increase in the purchasing power of their income.