
Benefits of two countries having mutual voluntary trade.

Explanation of Solution
Trade between two countries is extremely beneficial to a nation. It is believed that any nation's wealth is based on national holdings. In general, trade is beneficial between two countries that have strong markets at two different levels and in different sectors.
The opening of trade would do more to make new exchanges profitable.It would also affect what people decide to produce with their labor. The changes in
It positively increases the economic interdependence of two nations. Industries are dependent upon a variety of raw materials, which no country/nationcan produce alone,and the interdependence is in the interest of both the countries.
Limitations of voluntary trade are very complex. It is because every country has a different pattern and format of trading. The deals may be good or bad in accordance to the relations shared by both the trading partners.
Want to see more full solutions like this?
Chapter 20 Solutions
Microeconomics (MindTap Course List)
- Critically analyse the five (5) characteristics of Ubuntu and provide examples of how they apply to the National Health Insurance (NHI) in South Africa.arrow_forwardCritically analyse the five (5) characteristics of Ubuntu and provide examples of how they apply to the National Health Insurance (NHI) in South Africa.arrow_forwardOutline the nine (9) consumer rights as specified in the Consumer Rights Act in South Africa.arrow_forward
- In what ways could you show the attractiveness of Philippines in the form of videos/campaigns to foreign investors? Cite 10 examples.arrow_forwardExplain the following terms and provide an example for each term: • Corruption • Fraud • Briberyarrow_forwardIn what ways could you show the attractiveness of a country in the form of videos/campaigns?arrow_forward
- Principles of Macroeconomics (MindTap Course List)EconomicsISBN:9781285165912Author:N. Gregory MankiwPublisher:Cengage LearningPrinciples of Economics, 7th Edition (MindTap Cou...EconomicsISBN:9781285165875Author:N. Gregory MankiwPublisher:Cengage Learning
- Principles of Economics 2eEconomicsISBN:9781947172364Author:Steven A. Greenlaw; David ShapiroPublisher:OpenStaxEconomics Today and Tomorrow, Student EditionEconomicsISBN:9780078747663Author:McGraw-HillPublisher:Glencoe/McGraw-Hill School Pub Co




