Advancement of industrial trade of a country is an index to its economic properity,elaborate with examples
Answers
Advancement of a country's international trade is an index of its economic prosperity because: International trade is in fact an 'economic barometer' of a country.
It has to resort to international trade in order to satisfy one or the other need of its economy.
1 If a country is present in global market, it can import goods and raw materials. Since all raw materials are not always there, this exchange helps in continuing production.
2 There are increased job opportunities once a country is in the international market, MNCs will set up and provide job opportunities.
3 Foreign investment helps accelerate development.
4 Also by participating in the international trade, country earns the much needed Foreign exchange.
5 The country also benefits from technology brought in by Foreign companies.
6 When a domestic company becomes MNC and establishes in other countries, it channelises the exchange of culture and indirectly helps in promotion of tourism industry.
(i) as the resources are limited no country can survive without International trade.
(ii) goods or resources possessed by one country are required by other and vice-versa. These differences create conditions for international trade.
(iii) foreign trade has helped India to improve its productivity of manufactured goods. International trade contributes to India’s economic growth, raising income level of people.
(iv) in the recent years, exchange of commodities and goods have been superseded by the exchange of information and knowledge.
(v) India has emerged as a software giant at the international level and it is earning large foreign exchange through the export of information technology.
Thus, it can be concluded that advancement of international trade of a country is an index of its economic property.