Why Nations Trade

Advantages

-Provide more profits for the exporting country
-Introduces new products into the country
-The economy of the country increases
-Improve relationships with other countries
-Helps developing countries to become more developed

Disadvantages

-Increases the price of the product for the consumer
-High levels of transportation cost
-Imports hinder the economic development of the importing country

Factors that influence trade

1. The resources the country has

Natural resources- oil,gas,water,crops
Financial resources- money
Human resources- people

2. Culture

3.The needs of both parties (groups)

4.The distance between two countries

5.The inflation

Increase in production costs

6. Trade laws

Taxes to be paid at customs

7.Government Agreements

Word	Spanish Equivalent	English Meaning
Expertise	Habilidad	A high level of knowledge or skill
Surplus	Superávit	The amount of money you have left when you sell more than you buy, or spend less than you have
Encourage	Fomentar, Estimular	To make someone more likely to do something, or to make something more likely to happen
Raise	Elevar, Aumentar	To lift something to a higher position
Labour	Mano de Obra	Workers, especially people who do practical work with their hands
Benefit	Beneficio	A helpful or good effect, or something intended to help
Decline	Declive, Decadencia, Deterioro	To gradually become less, worse, or lower
Retaliate	Tomar represalias, Contraatacar	To hurt someone or do something harmful to them because they have done or said something harmful to you
Prevent	Impedir, Evitar	To stop something from happening or someone from doing something
Restrict	Restringir, Limitar	To limit the movements or actions of someone, or to limit something and reduce its size or prevent it from increasing
Customs	Aduana	The authorities designated to collect duties levied by a country on imports and exports
Delay	Demora, Retraso	To not act quickly or immediately