What economic activity is associated with the term 'trade'?

Disable ads (and more) with a premium pass for a one time $4.99 payment

Enhance your GCSE Geography exam skills. Study with interactive quizzes covering key topics, insights into exam format, and success tips. Boost your confidence for exam day.

The term 'trade' primarily refers to the buying and selling of goods and services, particularly between different countries, known as international trade. This economic activity enables countries to access resources and products that may not be available domestically, which can enhance their economies and improve consumer choices.

In the context of international trade, countries exchange goods and services to fulfill their needs and stimulate economic growth. This involves exporting products they can produce efficiently while importing those that they cannot or that are more cost-effective from other nations. The interaction of these activities fosters global economic relationships and can lead to increased prosperity for the nations involved.

While the other options touch on various aspects of the economy, they do not directly describe trade. Earning interest pertains to finance, funding local businesses relates to economic support and investment, and the export of cultural heritage involves cultural exchanges rather than commercial transactions. Hence, the definition of trade as the buying and selling of goods between countries aptly captures its fundamental economic activity.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy