International Trade
Nations trade internationally to import needed goods and services, or to export goods and services for profit. The amount of goods and services nations import and export relies on various factors. This includes comparative advantage, access to resources, and the ability to exchange goods. Comparative advantage enables nations to produce certain goods and services for less. This leads to specialized industries and efficient resource use.
International trade fosters interdependence. This leads many nations to join larger economic unions or alliances. Advantages to economic unions include access to larger markets and greater resources, more efficient industries, and more influence on the world market. Membership in economic unions also has disadvantages. For instance, some industries cannot compete and must close. Others become concentrated in certain countries, and members may disagree on policies. Despite these challenges, globalization brings countries and people together through communication and transportation advancements.