Question

how international trade affect the economy.

Answer 1

Answer:

Foreign trade helps in breaking vicious circle of poverty. But international trade enables underdeveloped countries to produce more of those goods in which they enjoy more advantage.

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Answer 2

Answer:

Foreign Trade helps in Breaking Vicious Circle of Poverty: ... But, international trade enables underdeveloped countries to produce more of those goods in which they enjoy greater comparative advantage. Consequently, production, income and employment in these countries increase leading to increase in demand.