Think about the link between economic growth and trade as you read this scenario. Then answer the question that follows. Country X specializes in the production of electronics. Country Y specializes in the production of textiles. The governments of the two countries signed a trade agreement last month to make it easier and cheaper to trade goods across their border.

Claudia worked at an electronics factory in country X but lost her job two years ago. Last week, the company called and offered her a job, because it needs to hire more people to keep up with demand.

David works at a textile factory in country Y. His manager has asked him to work overtime to fulfill the demand for the company’s textiles. He happily accepts, because he hopes to help his son and daughter with their college expenses next year.

Why might countries X and Y have decided to sign this trade agreement?