Question -Explain how geological structures, mineral resources and climate are the bases of international trade.
The correct answer is -Geological structures, mineral resources, and climate are all critical factors that contribute to the development of international trade. Here’s how each of these factors is a basis for international trade:
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Geological structures: Geological structures such as mountains, valleys, and rivers have significant impacts on the transportation of goods and the development of trade. Mountains and hills often provide natural barriers to trade, making it difficult to transport goods across them. However, valleys and river valleys can provide natural transportation routes that enable goods to be transported more easily. For example, the trade routes along the Silk Road were established because the mountains along the route made it difficult to travel overland. Similarly, the Panama Canal was built to enable ships to bypass the mountainous terrain of Central America and create a faster shipping route between the Pacific and Atlantic oceans.
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Mineral resources: Mineral resources are a significant driver of international trade, as many countries rely on the export of minerals such as oil, coal, and precious metals to generate revenue. Countries that are rich in mineral resources often have a comparative advantage in the production of goods that use those resources. For example, countries that have a large supply of oil can produce petroleum-based products such as plastics and chemicals more efficiently, making them competitive in international markets.
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Climate: Climate can also play a significant role in international trade. Countries that have a warm climate and long growing seasons may be able to produce agricultural products such as fruits and vegetables year-round, giving them a comparative advantage in the production of these goods. Similarly, countries that have a colder climate may be able to produce goods such as timber and furs more efficiently than warmer countries.
