Question

Why do countries participate in foreign trade?

Answer 1

According to classical economists, countries participate in foreign trade because they cannot produce all the goods and services on their own. It might be more efficient instead, to import certain goods.
A country's resources are suitable only for the production of certain specific goods and services.
Therefore, the country should produce only those goods for which its resources are suitable, thus giving it a cost advantage, and import other goods from foreign countries.