Question

how does foreign trade lead to integration of markets across countries explain with an example

Answer 1

After independence ,the government of India had put barrier on foreign trade and foreign investment ,to protect the producers within the country from foreign competition,as they were just coming up in 1950s and 1960s .At that time ,India allowed imports of only essential items such as machinery,fertilisers, petroleum ,etc.
It is notable that all developed countries ,during early stages of development ,have given protection to domestic producers through a variety of means.

Answer 2

Foreign trade leads to integration of markets across countries by the processes of imports and exports. Producers can make available their goods in markets beyond domestic ones via exports. Likewise, buyers have more choice on account of imports from other countries. This is how markets are integrated through foreign trade. For example, Japanese electronic items are imported to India, and have proved to be a tough competition for less-technologically-advanced companies here.