Economy, asked by alpsharma5764, 1 year ago

Foreign trade is not free from difficulties.' Comment.

Answers

Answered by cristinarocsana
4

Foreign trade is defined as the external trade with other countries. A country can both import goods or export them. Both types com with its challenges and difficulties.

First, there is an economic risk. The economic situation can change in the country you are doing trade with and that can affect all parties. Prices can drop or inflation can rise. There is also a political risk. The political situation (govern, riots) can change. Any political change deeply influences a country's economy. Also, the attitude of a country's government towards economy influences the amount of trade that can be done or the goods that are exchanged. For example, a country can someday just ban the entire trade with a certain country or for a certain good.

Also, there are international standards for any good. When a country is trading internationally, it must meet these standards. So this has an impact on state welfare, internal production and quality as well.

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