Trade - SS3 Geography Past Questions and Answers - page 2

Trade influences a country's economic growth and development by expanding markets, increasing production, creating jobs, and fostering innovation. It allows countries to specialize, optimize resource utilization, and access a broader range of products, which contributes to economic prosperity.

An example of a product benefiting from international trade due to specialization is the production of Swiss watches. Switzerland specializes in manufacturing high-quality watches, and through trade, they can exchange these specialized products with other countries, benefiting from their strengths in different industries.

Trade can impact the environment and sustainability through factors such as increased transportation emissions, over-exploitation of natural resources, and the potential for environmental regulations to be bypassed. However, trade can also promote sustainability by encouraging eco-friendly practices and supporting the global adoption of environmentally responsible technologies.

Trade can be used as a tool for resolving political conflicts between countries by fostering economic interdependence. When nations have shared economic interests through trade, it discourages conflicts, as war could disrupt economic relations. Diplomacy and negotiations are preferred to maintain economic stability.

A real-world scenario where trade played a significant role in shaping diplomatic relations is the normalization of relations between the United States and China in the 1970s. Trade interactions and economic cooperation between these two countries helped thaw diplomatic tensions and opened doors for further cooperation in various areas.