Why Do Countries Trade with Each Other?

📈 Economics Years 5–6 Foundation

No country can grow or make everything it needs. Discover why countries buy from and sell to each other, so that everyone can enjoy far more than they could produce alone.

Open this lesson, with practice and a printable worksheet →

Bananas need hot, sunny weather to grow well. Britain is often cool and cloudy — not ideal for bananas! Yet British shops are full of them. How? The answer is international trade.

Why this matters: Trade between countries is why your local shop can sell food, clothes and toys from all over the world — and why understanding it helps you see how connected our planet really is.

No country can make everything

Every country has different weather, land and resources. A hot, sunny country might grow wonderful fruit but have little coal or wood. A country with huge forests might have plenty of wood but a climate too cold for growing bananas. Because no single country has everything it needs, countries trade with each other.

Country typeOften good at producing
Hot, sunny countriesFruits like bananas and cocoa (for chocolate)
Countries with big forestsWood and paper
Countries with lots of factories and skilled workersMachines, medicines and cars

Exports and imports

When a country sells goods to another country, this is called an export. When a country buys goods from another country, this is called an import. Most countries do both: they export what they have plenty of, and import what they need but cannot easily make themselves.

Britain does not have the hot climate needed to grow cocoa, so it imports cocoa from countries like Ghana and Ivory Coast to make chocolate. In return, Britain might export things like medicines or cars to other countries.
🍫 Hotcountry💊 CoolcountryCocoa (export)Medicine (export)

Everyone can have more, together

Because countries specialise in producing what they are naturally good at, and then trade with each other, people everywhere can enjoy a much wider range of food, clothes and goods than any single country could ever produce alone. This is very similar to how workers specialise in different jobs within one country — just on a much bigger, worldwide scale.

Put the journey of a chocolate bar in order:

  1. Cocoa beans are grown on a farm in a hot country
  2. The cocoa beans are exported (sold) to a cooler country
  3. A factory in the cooler country turns the cocoa into chocolate
  4. The chocolate bar is sold in shops, and may even be exported to other countries too
Next time you eat a banana or unwrap a chocolate bar, think about the country it may have travelled from — trade connects the whole world.
Get the printable worksheet →
← Looking After Our Resources
← Sasta Basta home All subjects