The quality and quantity of the commodities produced in a country depends on the technological development in that country. The developed countries of the world manufacture highly valued machineries and consumer products. As the technological development of the developing countries is not appreciable and it is difficult to convert the raw materials into consumer goods. They export therefore the raw materials. Hence, these countries have low incomes. On the other hand, the manufactured products increase for a country using its technological process. For example, rice production in Japan is 6,000 kg to a hectare. But in India, it is only 2,000 kg/ha.
In this way, the demand and supply for manufactured commodities differ from place to place. Trade transfers the surplus of one area to the area where it is in deficit. Thus, trade helps with all the required commodities being made available to all places. Transport supports this activity.
When there is demand in one country for a product produced in another country, then it has no option but to buy this product from that country. Conversely, the money currency of that country goes up in value. For example, for the products such as machinery and consumer goods manufactured in the developed countries such as Japan and the United States, there is market in most other countries of the world. Those countries which produce petroleum and export to all other countries have become the richest countries by themselves.
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