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Basis of International Trade. A country specializes in a specific commodity due to mobility, productivity and other endowments of economic resources. This stimulates a country to go for international trade. The basis of international trade lies in the diversity of economic resources in different countries. Countries engage in trade because it allows them to acquire resources that they do not have, sell resources that they have in abundance, increase income and protect multinational corporations. International trade allows countries to expand their markets for both goods and services that otherwise may not have been available domestically. As a result of international trade, the market is more competitive which results in more competitive pricing which brings a cheaper product home to the consumer. Natural resources account for 20% of world trade, and dominate the exports of many countries. ... The instruments used include export taxes, price controls, production quotas, and domestic producer and consumer taxes (equivalent to trade taxes if no domestic production is possible).