WHY INTERNATIONAL TRADE?
One of the most logical questions to ask is, why do modern countries trade with one another? There are numerous reasons that countries engage in international trade. Some countries are deficient in critical raw materials, such as lumber or oil. To make up for these various deficiencies, countries must engage in international trade to obtain the resources necessary to produce the goods and/or services desired by their citizens. In addition to trading for raw materials, nations also exchange a wide variety of processed foods and finished products. Each country has its own specialties that are based on its economy and the skills of its citizens. Three common specialty classifications are capital, labor, and land. Capital-intensive products, such as cars and trucks, heavy construction equipment, and industrial machinery, are produced by nations that have a highly developed industrial base. Japan is an example of a highly developed industrial nation that produces large quantities of high-qu
