Oct 5, 2022 | News
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A symposium entitled: Why Do Countries Trade with Each Other

Today on (Oct 5, 2021) in the presence of the presence of the head of departments and lecturer a symposium entitled (Why Do Countries Trade with Each Other?), was presented by the Lecturer (Mr. Shivan Hadi Ali) The rapporteur from the business administration department, Where it has been explained about the International trade is the exchange of capital, goods, and services across international borders or territories, which could involve the activities of the government and individual. It is worth mentioning that trading partners reap mutual gains when each nation specializes in goods for which it holds a comparative advantage and then engages in trade for other products. The symposium would also analyze why countries sell much of what they produce to other countries and why they purchase much of what they consume from other countries. An empirical
relationship known as the gravity model helps to make sense of the value of trade between any pair of countries and also sheds light on the impediments that continue to limit international trade even in today’s global economy. Each nation should produce goods for which its domestic opportunity costs are lower than the domestic opportunity costs of other nations and exchange those goods for products that have higher domestic opportunity costs compared to other nations. According to international trade theories, all countries that engage in international trade would gain from trade in different proportions regarding the power of their economy , At the end of the symposium, a set of questions and answers were raised on this subject