Question

How has foregn tradecbeen integrating markets of differnet countries exapmles?

Answer 1

Foreign trade integrate the markets of diff. country's by just setting up their MNCs there. Also by setting up their industries in the areas where cheap labour, easy resources and transportation facalities are available. For ex. we can take the the car company of Renault and volkswagen.

Answer 2

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• Foreign trade creates an opportunity for the producers to reach beyond the domestic markets, i.e., markets of their own countries.

• The competition is thus not just within the county, but also from the producers of different countries.  

• The buyers also get benefited as they now have more choices and a wider range of products to choose from.  

• With the opening of trade, goods travel from one market to another. Choice of goods in the markets rises. Prices of similar goods in the two markets tend to become equal.

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