mention any five features of foreign trade...
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(i) Nation can optimally use its resources.
(ii) Technical know-how can be imported.
(iii) Surplus production can be exported.
(iv) Machinery and raw materials can be imported as and when needed.
(v) Food grains and necessary help can be imported during natural calamities like earthquake, & flood etc.
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Foreign trade creates an opportunity for the producers to reach beyond the domestic markets i.e. they can sell their produce not only in markets located within the country but also compete in markets located in other countries of the world.
It also provides an opportunity for the other country to expand the choice of goods beyond what is domestically produced.
Prices of similar goods in the two markets tend to become equal.
Producers in the two countries now closely compete against each other even though they are separated by thousands of miles.
Thus foreign trade results in connecting the markets or integration of markets in different countries.
It also provides an opportunity for the other country to expand the choice of goods beyond what is domestically produced.
Prices of similar goods in the two markets tend to become equal.
Producers in the two countries now closely compete against each other even though they are separated by thousands of miles.
Thus foreign trade results in connecting the markets or integration of markets in different countries.
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