mention the important feature of foreign trade
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By internal or domestic trade are meant transactions taking place within the geographical boundaries of a nation or region.
International trade, thus, refers to the exchange of goods and services between one country or region and another.
International trade takes place on account of many reasons such as:
1. Human wants and countries’ resources do not totally coincide. Hence, there tends to be interdependence on a large scale.
2. Factor endowments in different countries differ.
3. Technological advancement of different countries differs. Thus, some countries are better placed in one kind of production and some others superior in some other kind of production.
4. Labour and entrepreneurial skills differ in different countries.
Advantages and Features of International Trade:
(1) Enhanced Wealth:
Increase in the exchangeable value of possessions, means of enjoyment and wealth of each trading country.
(2) Larger Output:
Enlargement of world’s aggregate output.
(3) Welfare Contour:
Increase in the world’s prosperity and economic welfare of each trading nation.
International trade, thus, refers to the exchange of goods and services between one country or region and another.
International trade takes place on account of many reasons such as:
1. Human wants and countries’ resources do not totally coincide. Hence, there tends to be interdependence on a large scale.
2. Factor endowments in different countries differ.
3. Technological advancement of different countries differs. Thus, some countries are better placed in one kind of production and some others superior in some other kind of production.
4. Labour and entrepreneurial skills differ in different countries.
Advantages and Features of International Trade:
(1) Enhanced Wealth:
Increase in the exchangeable value of possessions, means of enjoyment and wealth of each trading country.
(2) Larger Output:
Enlargement of world’s aggregate output.
(3) Welfare Contour:
Increase in the world’s prosperity and economic welfare of each trading nation.
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