It is also important in trading to know where you can get best advantage or comparative advantage where in for example two countries trade a specific good, it is important the countries knows where or what good to specialize and can get maximum satisfaction and income. Trading is very important not only economic aspect but also in environmental relations of countries and partnerships, it is also gives implication to producers to produce at best and extensively to meet the standards of the global market, competition takes place and consumers has wider range of choices but the government should always do its role on protecting small markets, time to make them competitive and some rules on tariffs, quotas and restrictions to protect the domestic market as well.
Trade relies not only on countries participating, the rules and restrictions but also on exchange rates which varies, given for example Japan exports electronic gadgets at 500 yen or amounting of $300 and USA produces wheat and export to Japan, then when the currency of yen appreciates (Appreciation means it takes fewer units of dollars to buy a single unit some or other foreign currency) so the dollar depreciates (depreciation means that it... [continues]
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(2008, 05). The Role of Trade in Japan’s Economy. StudyMode.com. Retrieved 05, 2008, from http://www.studymode.com/essays/Role-Trade-Japan-s-Economy-147733.html
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