CHAPTER 7 Assignment 8 International Business Paper: In this paper, provide a title or descriptive title for your paper focusing on topics or countries of interest to you (such as “Business Models and Developments in 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 explaining trade flows between the selected countries.3. Discuss the concept and impact of unrestricted free trade among selected nations.4. Should the government of each selected country play a proactive role in promoting national competitive advantage in certain industries? Why or why not?5. Provide suggestions, recommendations and implications to managers regarding new developments in the global trading system. Write your article in 4 to 5 double-spaced pages. Trade represents an important part of every country's economy. Almost every country in the world trades with and depends on another country for their daily lives. A country trades its goods with goods from another country because it can produce a good very efficiently and at low cost and therefore sells it to another country. The other country has a different good that is rare in the rest of the world, and so it can exchange that good for something it lacks. China is the United States' largest trading partner. The largest amount of goods exported from the United States to Canada were cars, machinery, mineral fuels, oil and plastics. The main imports from Canada were mineral fuel, petroleum, automobiles, machinery and plastics. These countries trade because they believe it is the best and most efficient way to get good profits...... middle of paper ...... y. They can no longer compete with this country and are forced to stop their production. It becomes a monopoly, where that country can set the price however they want, because they know they control that specific market and no one can compete with them. .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://enomics-exposed.com/theory-or- international trade-6/