Explain the meaning and importance of international trade
Answers
When trade happens between two or more countries , it is called international trade.
It is important because
1) multi national companies can come up.
2) it improves the quality of domestic goods due to high competition from mncs.
3)however, a few local companies may shut down because of the competition
4)improved machinery and technology
5)helps in increasing gdp.
International trade is the exchange of capital, goods, and services across international borders or territories.
In most countries, such trade represents a significant share of gross domestic product(GDP). While international trade has existed throughout history (for example Uttarapatha, Silk Road, Amber Road, scramble for Africa, Atlantic slave trade, salt roads), its economic, social, and political importance has been on the rise in recent centuries.
Carrying out trade at an international level is a complex process when compared to domestic trade