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Explain why neighboring countries tend to trade extensively with each other.

Explain why neighboring countries tend to trade extensively with each other.

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Neighboring countries have common borders, proximity of the market and easier to share the labor forces. Besides, neighboring countries depend upon the information passed on by each other to effectively maintain the security level in the country. Besides, in the event of any disaster, the neighboring nations come to the help at the earliest. So, trade preferences are given to these neighboring nations and extensive trade exists. Besides, the one neighbor can only achieve the sustainability in growth, when other neighbors also get an opportunity and chose a path to grow. It also leads the neighboring nations to trade with each other.

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