CHAPTER 7Assignment 8International Trade Paper: In this paper, provide a descriptive title or heading for your paper focusing on topics or countries that interest you (such as “Trade Patterns and Developments in the Country X and CountryY”), then discuss the following concepts:1. Using two different countries, explain why nations trade with each other. Provide specific examples.2. Examine at least two different theories that explain trade flows between the selected nations.3. Discuss the concept and impact of unrestricted free trade among the selected nations.4. Should the government of each selected country play a proactive role in promoting national competitive advantage in certain sectors? Why or why not?5. Provide suggestions, recommendations, and implications for managers regarding new developments in the global trading system. Write your article in 4-5 double-spaced pages. Trade is a significant part of every country's economy. Almost every country in the world trades with another country and relies on it for their daily lives. A country trades its goods for another country's goods because it can produce a good very efficiently and at low cost and then sells it to another country. The other country has a different good that is in short supply to the rest of the world, and can therefore trade that good for something it lacks. China is the United States' largest trading partner. The largest quantity of goods exported from the United States to Canada were automobiles, machinery, mineral fuels, oil and plastic. Most imports from Canada were mineral fuels, oil, automobiles, machinery and plastics. These countries trade because they believe it is the best and most efficient way to make good profits... middle of paper... y. They can no longer compete with that country and are forced to stop production. This becomes a monopoly, where that country can set the price at any price, because it knows it has control over that specific market and no one can compete with it. http://www.economicsonline.co.uk/Global_economics/ Why_do_countries_trade . html https://www.census.gov/foreign-trade/balance/ http://www.ustr.gov/countries-regions/americas/canada http://www.ustr.gov/trade-agreements/free - trade-agreements/north-american-free-trade-agreement-nafta http://econweb.tamu.edu/aglass/econ652/ln1slides.pdf http://www.britannica.com/EBchecked/topic/291349/international - trade/61690/Factor-endowments-the-Heckscher-Ohlin-theory?anchor=ref127193 http://www.ehow.com/list_6856928_disadvantages-unrestricted-trade.htmlhttp://economics-exposed.com/theory-or-trade international-6/