Despite the vast complexity of international trading, nations and nation’s firms routinely engage in this practice because it’s benefits outweigh the drawbacks for all the parties involved in the trade. According to Peng (2014), “[…] The aggregation of such buying (importing) and selling (exporting) by both sides leads to the country- level balance of trade […]” The gains to international trade come from the value and uniqueness of the exports generated by one nation’s firms that are very beneficial for other nations to import. To bring a concrete example, lets analyze the one of the trades that existed between Cuba and the United States prior to the establishment of the Cuban Embargo Law after 1959. Due to the soil quality, environment and
