Which of the following is NOT a reason for international trade?
A. Import goods that cannot be produced locally.
B. Sell off surplus production.
C. Import lower priced goods.
D. Inexpensive freight services between countries.
Answer (2)
The choice that is NOT a reason for international trade is D, which refers to inexpensive freight services. While transportation costs can influence trade, the main reasons for international trade are the need for goods, surplus production, and lower prices. Therefore, option D is not a driving force behind the decision to trade internationally.
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International trade involves the exchange of goods and services between countries. There are several key reasons why countries engage in international trade:
Import Goods That Cannot Be Produced Locally : Countries often import goods that they cannot produce due to lack of resources, technology, or environmental conditions. For example, a country with a cold climate may import tropical fruits.
Sell Off Surplus Production : Countries may have an excess of goods or resources and can sell these surpluses to other countries. This helps maintain balance in local markets and provides economic benefits from exports.
Import Lower Priced Goods : Some countries produce certain goods more cheaply than others due to lower labor costs or more efficient production processes. Importing these goods allows consumers to purchase items at a lower price.
Inexpensive Freight Services Between Countries : While modern freight services have reduced the cost of shipping goods internationally, inexpensive freight services are not a primary reason for international trade. They are more of a facilitator, making trade more efficient rather than being a motivation for it.
Given these points, the correct answer to the question of which is NOT a reason for international trade is D. Inexpensive freight services between countries . Freight services facilitate trade but do not drive the fundamental reasons for it.
