How does international trade work?

Can you explain how international trade works?

Sure! International trade involves the exchange of goods and services between countries. It allows nations to access resources they may not have domestically.

What are the benefits of international trade?

The benefits include access to a wider variety of goods, economies of scale, and increased competition, which can lead to lower prices.

Are there any downsides to international trade?

Yes, there can be downsides such as job losses in certain industries, trade imbalances, and dependency on foreign markets.

How do tariffs affect international trade?

Tariffs are taxes on imported goods, which can make foreign products more expensive and protect domestic industries, but they can also lead to trade disputes.