Give two reasons for the importance of External trade.
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Importance of External Trade
- Division of labour and specialisation. ...
- Optimum allocation and utilisation of resources. ...
- Equality of prices. ...
- Availability of multiple choices. ...
- Ensures quality and standard goods. ...
- Raises standard of living of the people. ...
- Generate employment opportunities. ...
- Facilitate economic development
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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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