Question

Disadvantage of external trade

Answer 1

Disadvantages of external trade.

(i) Impediment in the Development of Home Industries.

(ii) Economic Dependence.

(iii) Political Dependence.

(iv) Mis-utilisation of Natural Resources.

(v) Import of Harmful Goods.

(vi) Storage of goods.

(vii) Danger to International Peace.

(viii) World Wars.

(ix) Hardships in times of War