'Advancement of international trade of a country is an index to its economic prosperity.' Elaborate with examples.
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Answer:
Hey! Here's your answer:
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 channelizes the exchange of culture and indirectly helps in promotion of tourism industry.
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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.