why do countries export1

Apuntes

why do countries export? 1. lower prices = allows countries to access goods and services at lower costs, either due to cheaper production abroad or comparative advantages in certain industries 2. greater choice = trade increases the variety of products available to consumers, enabling access to goods and services that may not be produced domestically 3. differences in resources = countries have different endowments of natural resources, climate, skills and technology. By trading, nations can obtain products they cannot efficiently produce themselves 4. economies of scale = by specializing in certain products and exporting them, countries can increase production efficiency —> specialization allows businesses to lower unit costs through mass production and improved expertise 5. increase competition = exposure to international markets encourages domestic producer to improve quality, efficiency and innovation to remain competitive 6. resource allocation = trade encourages countries to allocate resources to industries where they have a comparative advantage, maximizing productivity and economic growth. 7. source of foreign exchange =. Exports brings in foreign currency, which hel...