International economy: The 3 major reasons why nations trade

This time let us also understand about theĀ tradingĀ of nations. This is the part of the international economy. It is good to understand what is happening in our environment. In this times we are talking much about the economy. It is important that you would know much about the effect of it on the country you live and you can go deeper and understand it in the local setting. All are connected to each other even if you do not want to be not connected.

You can see the reasons above why nations make a trade to each other. we can say that all are connected to each other. If one country suffers economically, the other countries also suffer. An example is that when the economy of the leading country has slowed down in its growth the value of its currency when converted to other currencies can be lower. Other countries economy can also be affected as they have their investment in the other country and their performance has an effect on them.

In the infographic is the three major reasons broken down to better understanding why nations trade with each other. One of it is because of the condition of the land that has the natural resources. It can be in agricultural produce like vegetables and fruits. Or the labor that could be provided by a nation. It can also because of the needed capital. It is all in the infographic so you can understand it.