Question

How does foreign trade integrate the markets of different countries .7 Explain with examples

Answer 1

(a) Through trade, goods can travel from one market to another.
(b) Choice of goods in the markets rises and prices become equal.
(c) Producers compete closely with each other.

Answer 2

Answer:Foreign trade has been integrating markets of different countries, as it allows the producers to cross international boundaries in search of cheap raw materials. The manufactured goods and services can now be sold in various markets of different countries. With many MNCs in the market, the consumer now has a wide range of products coming from different nations to choose from.  Foreign trade therefore, interlinks various markets across the countries.

For example, Volkswagen, a German automobile company, is the biggest German automaker and second largest automaker in the world. It came to India in 2007 and had recorded sales of 32,627 vehicles in the year 2010. Volkswagen, by launching various models of cars in India, has broadened choices of people in the automobile sector

Explanation: