How foreign trade helps in connecting the markets or integration of markets?
Answers
Foreign trade leads to the combining of market across countries. For e.g Chinese toys in India and Indian readymade garments in other countries result in connecting the markets or integration of market in different countries. Due to opening of foreign trade, commodities move from one market to the other.This increases the choice of goods in the market. As a result prices are similar kinds of commodities in the different markets are likely to become equal. In this way, foreign trade leads to the integration of markets across countries.
Answer:
Foreign trade: The process of buying and selling goods and services between two or more than two countries is known as foreign trade
Explanation:
To put it simply, foreign trade creates an opportunity for the producers to reach beyond the domestics markets, i.e., markets of their own countries producers can sell their produce not only in markets located within the country but can also compete in markets located in other countries of the world. Similarity, for the buyers, imports of goods produced in another countries is one way of expanding the choice of goods beyond what is domestically produced