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Reasons for foreign trade
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[QUOTE="Mastergp, post: 273427, member: 85422"] Countries engage in internal trade for the following reasons they include the following: Uneven distribution of natural resources: Natural resources are unevenly distributed. While some countries are naturally blessed, others have little or no natural resources. This necessitates international trade. Differences in climatic condition: The climatic condition of the earth varies from one region to another. This variation gives raise growth of different crops, hence the need for exchange. Difference in technology: The level of technology differs from one country to another. Some countries with advance technology can produce some industrial products at reduced cost and sell to the less countries. Differences in skills: The inhabitants of a region may develop special skills in the production of commodity such that it acquires special reputation for it skill. This can necessitate foreign trade. Expansion of market for product: Foreign trade came into existence because of the need to widen the market for goods produced by a country. [/QUOTE]
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