Trade between nations takes place as some goods and
services can be produced at a lower cost in some nations than in others. The nations
which are more efficient in producing something can devote all their resources to doing
that and export the excess to others in exchange for goods that they are inefficient at
producing.
If the nation in reference has the required
resources like labor, capital, technology, etc to produce the components and can do so
at a price lower than the price it can buy the same from other nations, it should make
them on its own.
Else, it is economically beneficial to
import them from other nations and its own resources can be devoted to make products
that it is capable of producing with a higher efficiency and lower
cost.
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