How has foreign trade been integrating markets of different countries? Explain with examples.
Answers
Explanation:
(i) Foreign trade creates an opportunity for the producers to reach beyond the domestic markets. (ii) Producers can sell their products in the markets located in other countries. (iii) It helps for expanding the choice of goods beyond domestic market. ... (vi) The trading interest attracts various trading companies
Foreign trade creates an opportunity for the producers to reach beyond the domestic markets that is the markets of their own countries. produces can sell their products not only inmarket located within the country but can also complete in market located in other countries of the world.
it also provides an opportunity for the buyers to expand the choice of goods and services beyond the what is domestically produced.
Prices of similar goods in the 2 markets tend to become equal. producers in the two countries now closely compete against each other.
Example - as a result of opening of trade foreign car makers coming to Indian markets in the competition between India and foreign cars the latter prove better. so Indian buyers have greater choice of cars at low prices