WAEC Commerce 2025 Theory — Question 10

Model answer

i. To expand markets for its locally produced goods. ii. Comparative cost advantage — countries trade with others that produce a commodity at a lower cost than their own. iii. Countries are endowed with different resources, so to meet local demand they trade with countries that have what they lack. iv. Economies of scale of production differ from country to country, prompting countries to engage in foreign trade. v. Differences in technological know-how make a country engage in foreign trade.