REASONS OR BASIS FOR INTERNATIONAL TRADE
Countries engage in international trade for the following reasons:
- Uneven distribution of natural resources: Natural resources unevenly distributed. While sc countries are naturally blessed, others have little or no natural resources, necessitates international trade.
- Differences in climatic condition: climatic condition of the earth caries fid one region to another. This variation gives rise to another. This variation j rise to growth of different crops, hencethe need for exchange.
- Differences in technology: The technology differs from one nation the world to another. Some countries with advanced technology can produce some industrial products at reduced cost and sell to the less developed countries.
- Differences in skills: The inhabitants of a region may develop special skills in the production of a commodity such that it acquires special reputation for its skill. This can necessitate foreign trade.
- Expansion of market for products: Foreign trade came into existence because of the need to widen the market for goods produced by a country.
- Differences in the efficient use of natural resources: Foreign trade may arise because of differences in efficiency in the use of natural resources.
- Differences between patterns of production and consumption: The differences between patterns of production and consumption in different countries necessitate international trade.
- Differences in taste: Differences in the taste of various countries call for international trade.
153. FUNGAL DISEASES