Question

'Advancement of international trade of a country in an index to its economic prosperity.' Explain.

Answer 1

Advancement of a country's international trade is an index of its economic prosperity because: ... If the balance of international trade is favorable to a country, it can earn more foreign exchange and hence strengthen its financial position in the market.

Answer 2

Answer:

Advancement of international trade of a country is an index to its prosperity:

1. Resources are space-bound so countries need to trade with each other to procure various resources.

2. When the value of exports exceeds the value of imports, its favourable balance of trade. This shows the positive condition of the economy.

3. When the value of imports exceeds the value of exports, its unfavourable balance of trade. This is negative for an economy.

4. Increased international trade shows increased relations between countries which is mutually beneficially.

5. International trade is also considered an economic barometer for a country because it's a huge source of income as well as a sign of development.