Business Studies, asked by udaypatauda3451, 10 months ago

Give two reasons for the importance of External trade.

Answers

Answered by Varniktyagi13
1

Importance of External Trade

  1. Division of labour and specialisation. ...
  2. Optimum allocation and utilisation of resources. ...
  3. Equality of prices. ...
  4. Availability of multiple choices. ...
  5. Ensures quality and standard goods. ...
  6. Raises standard of living of the people. ...
  7. Generate employment opportunities. ...
  8. Facilitate economic development
Answered by Anonymous
2

Explanation:

Some countries have abundant natural resources thus they should export raw materials and import finished goods from countries which are advanced in skilled manpower.

  • Thus foreign trade gives benefits to all the countries and thereby leading to division of labor and specialization.

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