What problem does trade help a country solve?

Answer 1

Trade helps a country solve the problem of resource scarcity by allowing it to access goods and services that it may not be able to produce efficiently or at all. By engaging in trade, countries can specialize in the production of certain commodities where they have a comparative advantage, leading to more efficient resource allocation and increased overall economic output. Additionally, trade fosters competition, innovation, and consumer choice, ultimately contributing to improved living standards.