Question

Justify trade as internal economic development for a country.

Answer 1

Answer:

Although the rate of economic growth and the space and pattern of economic develop­ment depends primarily on internal conditions in developing countries, international trade can make significant contribution to economic development. The traditional theories of trade examine how growth in production capabilities can affect international trade.

Clearly, growth can have a major impact on international trade. There is also likely to be an impact in the other direction—from trade to growth. Exposure to interna­tional trade can have an impact on how fast a country’s economy can grow and how fast its production facilities are growing over time.