International trade is very important because it helps decide the prices of things we use every day. Let’s break it down:
Competition: When countries trade, businesses have to compete with each other. For example, if Swedish chocolate has to compete with Belgian chocolate, it might lower its prices to attract more buyers.
Supply and Demand: When a country gets more products from another country, like oranges from Spain, it can lower prices. This means we can enjoy tasty oranges at a better price!
Exchange Rates: The value of money in different countries can change prices too. For instance, if the Swedish krona becomes weaker compared to the dollar, things we import, like electronics, might cost more.
So, in simple terms, international trade affects how much we pay for the things we use every day!
International trade is very important because it helps decide the prices of things we use every day. Let’s break it down:
Competition: When countries trade, businesses have to compete with each other. For example, if Swedish chocolate has to compete with Belgian chocolate, it might lower its prices to attract more buyers.
Supply and Demand: When a country gets more products from another country, like oranges from Spain, it can lower prices. This means we can enjoy tasty oranges at a better price!
Exchange Rates: The value of money in different countries can change prices too. For instance, if the Swedish krona becomes weaker compared to the dollar, things we import, like electronics, might cost more.
So, in simple terms, international trade affects how much we pay for the things we use every day!