Question

How does external trade help in stablishing the prices of a product?

Answer 1

HEY MATE HERE IS THE ANSWER International trade helps in stabilising the prices of a product. The production and supply of a product need not equal to the demand of a product. The deficiency or excess of supply creates fluctuations in the prices of product. Product in short supply can be imported from other countries.
In difficult times like drought, famine, flood, war, etc international trade is very useful. Product in * excess supply can be exported to other countries.@@@@@ HOPE IT WILL HELP YOU #######