International trade facts for kids
International trade is when countries buy and sell goods and services to each other. Think of it like a giant global marketplace! Businesses in one country might sell their products to customers or companies in another country. This is called exporting. When a country buys products from another country, it's called importing. Sometimes, even governments buy or sell things directly to other governments.
International trade helps countries get things they don't have much of, like certain foods, raw materials, or technologies. It also allows countries to specialize in making what they are best at, and then sell those products to the rest of the world. This can make goods cheaper and give people more choices.
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Why Countries Trade?
Countries trade for many reasons. One big reason is that different places have different resources. For example, some countries have a lot of oil, while others have rich farmland or advanced factories. By trading, everyone can get what they need.
Trade also helps businesses grow. If a company makes great smartphones, they can sell them not just in their own country, but all over the world. This means more sales, more jobs, and more money for the country.
Rules of the Game: Tariffs and Free Trade
Sometimes, a country's government might worry that too many imported goods could hurt local businesses. If foreign products are much cheaper, people might buy them instead of products made at home. To help local companies, governments might add extra taxes on imported goods. These taxes are called tariffs. Tariffs make imported goods more expensive, so local products can compete better. This idea is called protectionism.
On the other hand, many countries believe in free trade. This means they try to remove tariffs and other barriers to trade. They want to make it as easy as possible for businesses to buy and sell across borders. Free trade can lead to lower prices for consumers and more choices.
When Trade Stops: Sanctions
Sometimes, countries might stop trading with another country completely. This is usually done for political reasons, like to pressure a government to change its actions. This is called imposing economic sanctions or an embargo. It's like a timeout in the global marketplace, where one country refuses to buy from or sell to another.
Images for kids
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Ports like the Port of New York and New Jersey are vital for international trade.
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The most traded export products around the world.
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The total volume of goods exported globally over time.
See also
In Spanish: Comercio internacional para niños
