Trade Around the World
Additional Information
For example, young people trade Pokemon items or sports cards. At the international level, trade often entails the purchase of goods and services, for which money is paid. Market forces most often set the value of the goods and services for international trade. The person, company, or country able or willing to pay the highest price, purchase the largest number, or make a long-term commitment to purchase goods and services, or some combination of those three conditions becomes the major trading partner. For example, people may purchase two pounds of Brazil nuts at the local grocery store. The store obtained them from a company that may have purchased 2 million pounds from the trader in South America (the nuts are harvested more widely than just in Brazil). The trader purchased the Brazil nuts in 20 pound bags from people harvesting them in the South American tropical forest. In exchange the people harvesting the Brazil nuts were either paid money or other goods that they needed and had value.