Question

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How is foreign trade interlinking markets of diffrent countries ?

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Answer 1

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Foreign trade leads to the combining of market across countries. For e.g Chinese toys in India and Indian readymade garments in other countries result in connecting the markets or integration of market in different countries. Due to opening of foreign trade, commodities move from one market to the other.This increases the choice of goods in the market. As a result prices are similar kinds of commodities in the different markets are likely to become equal. In this way, foreign trade leads to the integration of markets across countries.

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Answer 2

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