Question

Explain various Trade Reforms related to foreign trade announced in India in recent times.

Answer 1

Ans: International trade is the exchange of goods and services between countries. This type of trade gives rise to a world economy, in which prices, or supplyand demand, affectand are affected by global events. Political change in Asia, for example, could result in anincrease in the cost of labor, thereby increasing the manufacturing costs for an American sneaker company based in Malaysia, which would then result in an increase in the price that you have to pay to buy the tennis shoes at your local mall. A decrease in the cost of labor, on the other hand, would result in you having to pay less for your new shoes.Trading globally gives consumers and countries the opportunity to be exposed to goods and services not available in their own countries. Almost every kind of product can be found on the international market: food, clothes, spare parts, oil, jewelry, wine, stocks, currencies and water. Services are also traded: tourism, banking, consulting and transportation. A product that is sold to the global market is an export, and a product that is bought from the global market is an import. Imports and exports are accounted for in a country's current account in the balance of payments.

Reforms:Foreign Trade Policy 2015-2020 of India is ready to declare on 1st of April, 2015 at Vigyan Bhawan at 3.30PM.
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