Foreign Trade, the exchange of goods and services between nations. International trade enables a nation to specialize in those goods it can produce most cheaply and efficiently. International trade arises on account of territorial specialization. All countries are not endowed with the same types of natural resources. Importance of international trade lies on the advantages a country gets from it. A country gets various benefits by doing trade with foreign countries. A country trades with other countries for various reasons like, Territorial specialization, Comparative cost, Availability of resources, Foreign exchange, Price difference etc.
Though it have some disadvantages but it also have many advantages like, Specialization, Benefit to consumers- Best Allocation of World Resources, Widens the Market, Increased Production, Promotes International Peace, Exchange of Culture, Import of Rare Goods, Necessary for Developing Countries.
Though it have some disadvantages but it also have many advantages like, Specialization, Benefit to consumers- Best Allocation of World Resources, Widens the Market, Increased Production, Promotes International Peace, Exchange of Culture, Import of Rare Goods, Necessary for Developing Countries.
No comments:
Post a Comment