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Place we trade is called a ‘market’. For example, a fruit and vegetable market trades goods such as an apple, etc. Or, trade can refer to a baker who trades money for flour or wheat. However, we do not tend to trade because of the needs of other goods and services that we can not produce. Also, trade helps with increase of GDP, employment, incomes, wider range of choices in products, living standards and decreases inflation. We tend to trade because of the benefits we all can share around that will eventually make both side of trading relationships to gain advantages. This is called the law of comparative advantage...
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