Q1. What is international trade? Why does it occur?

International trade is the exchange of capital, goods, and services

across international borders or territories. In most countries, such trade represents a
significant share of gross domestic product (GDP).
Reasons for international trade:
1- Reduced dependence on your local market
2- Increased chances of success
3- Increased efficiency
4- Increased productivity
5- Economic advantage
6- Innovation
7- Growth
8. Exchange latest technology
9. Provide cheap products instead of costly production
Q2. How do the theories of absolute advantage and comparative
Advantages differ?
1. The absolute Advantage is the inborn capacity of a nation to create particular products in
an effective and viable way at a moderately lower minimal taken a toll. In any case, the
concept of Comparative Advantage alludes to the country’s capability
of creating the particular great at lower negligible taken a toll and opportunity fetched.
2. Absolute advantage concept is based on lower minimal fetched of generation of
a particular great. In any case comparative advantage bargains with the lower
opportunity fetched of generation of a particular great in comparison to competitor Nation.
3. Country with an outright advantage of creating a great center on maximizing
the generation with the same accessible assets. In any case, Nations with comparative
advantage takes under consideration the production of numerous products within
the nation whereas choosing the generation of a particular great and asset allotment for the
same