Question

Give on advantage of foreign trade.

Answer 1

Advantages and Disadvantages of Foreign Trade. Foreign trade helps each country to specialize in the production of those goods, which best suits it environments. It, thus leadsto maximum use of its natural resources. It enables a country to obtain goods by importing which it cannot produce due to higher costs at home.

Answer 2

●Foreign trade helps each country to produce not only for home consumption but for export to other countries also.

● It creates a very wide market for the surplus output of a country.

● Every country can sell its surplus goods in foreign markets.

●This leads to large scale production which provides several advantages.