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What are the reasons why countries trade with each other?
Obtaining goods that cannot be produced domestically
Obtaining goods that can be bought more cheaply from overseas
Selling off unwanted commodities
What is free trade?
It is trade without barriers or restrictions
What is protectionism?
Barriers imposed by governments on international trade
What are advantages of free trade?
Lower prices and increased choice for consumers
Lower input prices
Wider markets for businesses
What are disadvantages of free trade?
Competition for domestic businesses
Unemployment
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