Every time we walk into a store, restaurant, theater or any other place of business to
buy something, we trade. Basically, internetional trade does not differ from trade with
other people in our country. The key to understanding trade is to remember why it takes
place. The reason people trade, regardless of where they live, is that they believe they
will be better of by trading. When we consider the alternative-each of us producing
everying for ourselves-trade simply makes more sense.
The process of importing and exporting creates a greater variety of goods and services
because it permits countries to specialize in what they do best. By specializing in the
goods it can produce most efficiently, a country can increase production and have the
opportunity to make more sales and profits. Profits can turn into increased wages for
the work force and additional investment in plants and equipment. The process also
provides consumers with more goods at lower prices.