Question

" foreign trade integrates the markets in different countries. " support the statement with arguments.

Answer 1

Following points show that the opening up of foreign trade has integrated the markets across the countries.

1. Main channel for connecting countries :- Since time immemorial foreign trade has been the main channel connecting countries and markets.

2. Expansion of Local Markets :- To put it simply, foreign trade creates an opportunity for the producers to reach beyond the domestic markets , i.e., markets of their own countries. Producers can sell their produce not only in markets located within the country but can also compete in  markets located in other countries of the world.

3. Better choice for the buyers :- With the expansion of trade the choice of goods in market rises. Consumers get more variety and quality goods at cheaper rates. Similarly, for the buyers, import of goods produced in another country is one way of expanding the choice of goods beyond what is domestically produced. In general, with the opening of the trade, good travel from one market to another. Choice of goods in the markets increases.

4. Impact on prizes :- With the expansion of market , prices of similar goods in the two markets tend to be equal.

5. Competition :- Trade promotes the competition both within as well as outside the nation. Producers of different countries now closely compete against each other even though they are separated by thousands of miles.

6.Trade and globalization :- Trade is the most important component of globalization. Trade has played a very important role in stimulating the process of globalization

Answer 2

1. Main channel for connecting countries :-

Since time immemorial foreign trade has been the main channel connecting

countries and markets.

2. Expansion of Local Markets :- To put it

simply, foreign trade creates an opportunity for the producers to reach beyond

the domestic markets , i.e., markets of their own countries. Producers can sell

their produce not only in markets located within the country but can also

compete in  markets located in other

countries of the world.

3. Better choice for the buyers :- With the

expansion of trade the choice of goods in market rises. Consumers get more

variety and quality goods at cheaper rates. Similarly, for the buyers, import

of goods produced in another country is one way of expanding the choice of goods

beyond what is domestically produced. In general, with the opening of the

trade, good travel from one market to another. Choice of goods in the market.