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Trade
II:
Fundamentals
of
Importance of trade.
No single country produces
everything that its people need. In a world where every man
must depend upon other persons for many things he needs, and
where nation must trade with nation, the importance of trade
becomes apparent. If it were not possible to exchange the
product of ones labor for the products produced by others ,
each and everyone would have to produce what he needs
thereby reducing production to an almost insignificant level.
Both deal in the same objects of exchange, that is, goods and
services.
Both kinds of trade are carried on by individuals and business
firms. In this connection, it may be pointed out that as long as
the people enjoy a wide latitude of economic freedom, the
individuals will seek those occupations and professions to which
their talent, aptitude and ability are well suited. A number of
businessmen establish business firms for the purpose of
promoting their interests to their greatest advantage.
Both domestic and international trade are stimulated by the
desire for profit.
Striking Differences
will build its economic life providing within its own borders all
the commodities vital to its existence and prosperity. At the
same time, such a nation is determined to free itself from
being independent on other nations for goods. One of the
visible and obvious results of economic nationalism has been
the establishment of tariff walls designed to restrict the entry
of goods and products from foreign countries. Beyond doubt,
these tariff walls have merely served as instruments for
generating an atmosphere of suspicion, ill-feeling, and
mistrust if not hatred among nations.
3. Economic Interdependence.
If one of the aims of
government is a high standard of living for its people, then