A reason to trade with other nations is that trade A. reduces demand for goods and services. B. forces consumers to buy goods and services at a higher cost. C. reduces the supply of goods and services. D. allows consumers to buy goods and services at a lower cost.

The correct answer is **D. allows consumers to buy goods and services at a lower cost.**<br /><br />Here's the **reasoning**:<br /><br />* **Trade enables access to a wider variety of goods and services** that may not be available domestically. This increases the choices available to consumers.<br />* **Comparative advantage** is a key concept in international trade. Countries trade with each other because they have different opportunity costs for producing goods and services. By specializing in producing goods where they have a comparative advantage and trading with others, countries can consume beyond their production possibilities frontier.<br />* **Lower costs:** Trade allows consumers to purchase goods and services at lower prices than would be possible if they were limited to domestically produced goods. This is because different countries have different resource endowments, technologies, and production efficiencies.<br /><br />Let's look at why the other options are incorrect:<br /><br />* **A. reduces demand for goods and services:** Trade generally increases demand for goods and services by expanding markets and allowing countries to specialize.<br />* **B. forces consumers to buy goods and services at a higher cost:** This is not true. Trade typically lowers costs by allowing consumers access to cheaper or more efficient production methods available in other countries.<br />* **C. reduces the supply of goods and services:** Trade increases the supply of goods and services available to consumers by integrating markets across countries.<br /><br />**In summary, trade allows consumers to buy goods and services at a lower cost by taking advantage of global efficiencies and comparative advantages.**