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there are 4 powerful economic reasons for countries to trade:

- Comparative advantage (Able to produce something more efficiently than other countries)

- Economic of scales (lower cost due to specialization and mass production)

- International competition => beneficial for the world

- Spread of technology

Other non economic reasons

-Increased consumer choice

-Political and social gains due to trade treaties (Peace between countries who trade)

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What are 3 barriers to international trade?

Internation trade is gaining importance in developing countries ,it has lots of benefits to the exporter as well as importer country, but it has some limitation/barriers are listed below. Political and legal diff erences. Cultural differences. economic differences. differences in the currency unit. Differencess in the Language. Differencess in marketing infrastructure. Trade Restrictions. High cost of distance. differences in trade practices. These are the limitation of internation trade


What are the 3 international principle of economy?

The three international principles of economy include comparative advantage, which suggests that countries should specialize in the production of goods they can produce most efficiently; the law of supply and demand, which describes how prices are determined in a market economy based on the availability of goods and consumer desire; and the principle of free trade, which advocates for minimal restrictions on international trade to promote economic efficiency and growth. These principles guide how nations interact economically, influencing trade policies and international relations.


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What are the importance of macroeconomics?

The theoretical and practical importance of macro economics is briefly discussed as: 1. It is helpful in understanding the functioning of macro economics system. 2. It explains the factors which determine the level of national income and employment in an economy. 3. It explains the circular flow of national income in an economy. 4. It explains the problem of unemployment which is a main problem of developing countries. 5. It explains the various aspects of international trade such as terms of trade balance of payments, foreign exchange etc. 6. It studies the causes of fluctuations in the business cycle and to formulate the policies to control inflation and deflation.


What is the importance of macroeconomics?

The theoretical and practical importance of macro economics is briefly discussed as:1. It is helpful in understanding the functioning of macro economics system.2. It explains the factors which determine the level of national income and employment in as economic.3. It explains the circular flow of national income in an economy.4. It explains the problem of unemployment which is a main problem of developing countries.5. It explains the various aspects of international trade such as terms of trade balance of payments, foreign exchange etc.6. It studies the causes of fluctuations in the business cycle and to formulate the policies to control inflation and deflation.

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