Question

How does foreign trade lead to integration of markets across countries? Explain with an example other than those given here.

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 todomestic producers thruogh a variety of means.
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Answer 2

Answer:

=> Foreign trade is the main channel which connects the markets of various countries. Foreign trade lead to integration of markets across the countries as follows:

1】Creates opportunities for the producers to reach beyond the domestic markets or the markets of their own countries.

2】Import of goods from various countries provides choice of goods for consumers beyond the goods thet ere produced domesticeMy.

3】Producers of different countries compete with each other although they are thousands of miles away.

Explanation: