Question

advantages and disadvantages of foreign trade

Answer 1

Explanation:

• International trade helps each country to make optimum use of its natural resources. ...
• Foreign trade leads to specialisation and encourages production of different goods in different countries. ...
• International trade irons out wild fluctuations in prices.

Answer 2

Answer:

ADVANTAGE OF FOREIGN TRADE-

Increased revenues.

Decreased competition.

Longer product lifespan.

Easier cash-flow management.

Better risk management.

Benefiting from currency exchange.

Access to export financing.

DISADVANTAGE OF FOREIGN TRADE

Economic dependence: Too much dependence on imports may undermine the economy of a country

Restricted growth of home industries: ADVERTISEMENTS:

Misuse of natural resources:

Political exploitation:

Import of harmful goods:

Rivalry among nations:

Invasion of culture.