Do You Want My Cookies? Essay
How about this, you give me your time and I’ll give you my knowledge? That sounds just like our new unit trade doesn 't it? Coincidence? I think yes. Now, if you 're thinking there 's no point in talking about something as simple as trade, then you 're thinking wrong. Trade is not as simple as “I have a cookie and you have a juice box, let’s switch”. There are many other factors involved, especially at the national level. Things such as opportunity cost, factors of production, absolute advantage, comparative advantage, and the list goes on. So let’s take a closer look at this action we probably commit every day and let’s understand it a little better.
To start off with, what is trade? Trade, as google defines it, is exchanging (something) for something else, typically as a commercial transaction. To put it simpler it is the act of giving something and receiving something of equal value. http://thesvas.com/2013/01/07/give-and-get/
So why exactly do people trade? Here is a list of five good reasons:
1. In order to get goods we don 't have, or not enough of, to support our population.
2. In order to build stronger relations between nations
3. In order to create more advanced technology
4. In order to make money
5. In order to get rid of excess amount of resources we have
Aside from this list, another major reason why nation’s trade is simply because one nation cannot make everything. Every nation has a different amount of land,…