importance of international trade
Answers
Answer:
>>>> International trade is the exchange of capital, goods, and services across international borders or territorie because there is a need or want of goods or services.
In most countries, such trade represents a significant share of gross domestic product (GDP). While international trade has existed throughout history (for example Uttarapatha, Silk Road, Amber Road, scramble for Africa, Atlantic slave trade, salt roads), its economic, social, and political importance has been on the rise in recent centuries.
Carrying out trade at an international level is a complex process when compared to domestic trade. When trade takes place between two or more nations factors like currency, government policies, economy, judicial system, laws, and markets influence trade.
To smoothen and justify the process of trade between countries of different economic standing, some international economic organisations were formed, such as the World Trade Organization. These organisations work towards the facilitation and growth of international trade. Statistical services of intergovernmental and supranational organisations and national statistical agencies publish official statistics on international trade.
Answer:
The term 'trade' refer to exchange of goods and services. When trade takes place across the country, it's international trade.
Here are some Importance of International Trade :
1) International Trade enables the fuller utilization of resources. Underdeveloped countries are not in a position to use their mineral resources, so they export their raw materials to developed countries where the same are needed the most.
2) Because of International Trade the trading partners gets goods cheaper than otherwise. Because every country produce those goods in the production of which it has to occur less comparative cost.
3) By virtue of International Trade consumers gets an opportunity to consume a large variety of goods produced by different countries. This improves the quality of life.
4) International trade enables every country to dispose off their surplus production. Some countries produce more than their own requirement. They sell this surplus production in other countries and avoid the occurrence of deflationary pressures in the domestic economy.
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