Question

All of the following are reasons for countries to participate in foreign trade EXCEPT

Answer 1

Answer:

A. it is just as easy to start a business overseas as it is in the United States.

Explanation:

Globalization can be defined as the strategic process which involves the integration of various markets across the world to form a large global marketplace. Basically, globalization makes it possible for various organizations to produce goods and services that are used by consumers across the world.

Trade can be defined as a process which typically involves the buying and selling of goods and services between a producer and the customers (consumers) at a specific period of time.

All of the following are reasons for countries to participate in foreign trade;

I. No country or nation is able to produce all of the goods its people want and need i.e meeting the unending requirements of its citizens through production of goods and services.

II. Even if a country such as developed countries across the world was self-sufficient, other developing or underdeveloped nations would seek to trade with that country so as to meet the demands (needs) of its own people.

III. The interdependency of technology and resources for different countries. Some nations have resources, but not technological know-how; while others have know-how, but lack resources.