1.

) WHY DO COUNTRIES TRADE

Trade has always been important because no country can produce all the products and services that the
population needs. Trade is important because all countries have limited resources to respond to their
people's needs. So countries trade with one another to complete each other's needs. It became more
important to the world today because the needs have since not just evolved, but also increased, people
desire more.

2.) DISCUSS AND EXPLAIN INTERNATIONAL TRADE AND BUSINESS.

International trade are the economic transactions between countries such as exchange in capital, goods
and services across international borders. It allows countries to expand product distribution and product
source. Import and export are the two components of international trade.

Countries engage in international trade for the benefits it guarantees: it raises the living standards, it
provides employment, and last but not least it allows consumers to enjoy a much greater variety of
goods than their country is producing.

Besides these, international trade contributes significantly to the growth of country’s economy. When
the country exports in big quantities, the value of its currency increases. Additionally, a country involved
in international trade can maintain good relationship with other the trading countries and exchange
knowledge in different industries, which will definitely result in more qualitative products.