Explore BrainMass

Explore BrainMass

    Economic motivations underlying international trade

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    2. Address the economic motivations underlying international trade. Under what circumstances would two countries have no incentives to trade?

    © BrainMass Inc. brainmass.com June 3, 2020, 7:33 pm ad1c9bdddf

    Solution Preview

    Trade involves a profit motive and when there are price differences between two countries for the same goods or services, trade will occur. Any costs of trading across a barrier (import/export fees, tariffs, taxes) will be included in the price of goods or services to determine if the profit motive is sufficient. ...

    Solution Summary

    The solution explains motivations for international trade, but also give six reasons why there might be no trade between certain economies. It is referenced to three articles which could be of further use.