Role of Resources in International Trade and Advantages Derived from International Trade

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The Role of Resources in International Trade:
A resource is a supply or quantity from which some value is created. The role of resources in international trade comprise of the following: Improved wealth or requirements, appropriate operations of systems, or enriched well-being. There are different elements that define the advantages derived from international trade and include the following:
Availability of Resources:
Global trade depends on specialization of various nations involved in the trade. A country focuses on certain resources depending on their accessibility usually called factors of production. Availability of the assets increase the nation’s domestic cost ratios and thus the profitability from such trade (Baldwin and Evenett, 2015).
Size of a Country:
When a republic is not large in size, it becomes simple for them to concentrate and specialize in the manufacture of one product and export the extra goods to a bigger country. This way the exporting nation gets additional incomes from global trade (Krugman, Obstfeld, and Melitz, 2013). On the other hand, if a state is big in size, then they fo...