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Merits of Foreign Trade – Why it's Awesome! 🌟

1. Variety of Goods 🍎📱

  • You can eat Kiwis from New Zealand and use iPhones from California.
  • Benefit: Higher Standard of Living.

2. Economies of Scale 🏭

  • If Samsung only sold to Korea, it would make 1 Million phones (Cost $500).
  • Selling to the World = 100 Million phones (Cost $200).
  • Benefit: Cheaper goods for everyone.

3. Efficient Resource Utilization 💎

  • Saudi uses its Sand/Oil. Brazil uses its Rainforest/Coffee.
  • No waste.

4. International Peace 🕊️

  • "When goods don't cross borders, soldiers will." - Bastiat.
  • Countries that trade are less likely to go to war.

5. Emergency Help 🚑

  • During famine or drought, you can import food to save lives.

Quiz Time! 🎯

Test Your Knowledge

Question 1 of 5

1. Economies of Scale leads to:

Higher cost
Lower cost per unit
Less production
None

💡 Final Wisdom: "Trade is the reason you are reading this on a screen made in China, designed in USA, using software from India!" 🌏

Next up: Demerits of Foreign Trade - The Dark Side! 🌑

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