Question

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

Answer 1

This statement is true because
(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(iv) in the recent years, exchange of commodities and goods have been superseded by the exchange of information and knowledge.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.

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.