Question

Sat sri akal !

international trade is considered the economic barometer of a country justify the statement with the arguments ​

Answer 1

When trade takes place between two countries it is known as international trade.

(i) It is very important for the development of a country. Advancement of international trade of a country is an index to its economic prosperity.

(ii) As the resources are space bound, no country can survive without international trade.

(iii) It enables a country to earn foreign exchange which is needed to import essential goods. It is, therefore, considered the economic barometer for a country.

Answer 2

International trade is considered as a barometer of economic progress of the country as it indicates the share of a country in world trade. It also leads to inflow of foreign exchange and capital investments in the country and contributes to infrastructural growth. Significantly, it is an indicator of the role of the country's economy in a globalised world trade scenario.