gb13 - Why Nations Trade At its most basic level,...

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Why Nations Trade At its most basic level, international trade consists of importing (buying from other countries) and exporting (selling to other countries). The United States is the world’s top merchandise importer, service exporter, and service importer. It is the world’s number-two merchandise exporter. China has exhibited the strongest growth in merchandise trade, and India has exhibited the strongest growth in service trade. International trade is more complex than domestic trade, yet an increasing number of firms engage in international trade. One can therefore conclude that international trade must benefit all parties. If it did not, international trade would simply not occur. Moreover, the fact that world trade is growing faster than world GDP growth indicates that the gains from trade must be growing. It is technically incorrect for us to say that “nations trade,” because it is largely private firms—and not nations themselves—that trade among one another. Nevertheless, we will simplify our discussion
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gb13 - Why Nations Trade At its most basic level,...

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