International trade takes place because of difference in

International trade takes place because of differences in production cost between countries. Each country has its own resources, labor, and technology that influence the cost of producing goods and services. Some countries may have lower production costs for certain goods or services than others, making it more cost-effective to import those goods or services from another country rather than producing them locally. This creates a demand for international trade as countries seek to take advantage of these differences and increase their economic welfare.