FOREIGN TRADE

To the question „Why do nations trade with each other“ there are these answers. The first is that no country is sefl-sufficient. No country in the world can produce everything. Even the biggest countries have to import some of the goods they need.

A large part od foreign trade is between countries who produce the goods which they import. France is the world´s biggest importer and the world´s biggest exporter of wine.

The important reason for trade between nations must be that trade brings some advantage, some gain. At the basis of all this is specialization, or international division of labour.