Question

How has foreign trade been integrating markets of different countries ? Explain with
examples.

Answer 1

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

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

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

4. 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.

Hope this will help you ✿◕ ‿ ◕✿

Answer 2

.markets help

Interaction between countries which leads to integration of their markets.

Secondly , if there are cheaper labour in a country then foreign trade results in competition in market between goods of different countries.

For ex.

The foreign trade of Indian cotton textile led to integration of British and Indian market.