Question

what is the importance of trade? explain any four reasons why dense and efficient network of transport and communication is prerequisite for trade of today. please answer this ​

Answer 1

• Trade increases competition and lowers world prices, which provides benefits to consumers by raising the purchasing power of their own income, and leads a rise in consumer surplus. Trade also breaks down domestic monopolies, which face competition from more efficient foreign firms.

A dense and efficient network of transport and communication is a pre requisite for the

1. (i) movement of goods and services from their supply locations to demand locations.
2. (ii) The pace of development of a country depends not only upon production of goods and services but also on their movement over space for fast economic development.
3. (iii) It also contributes socio-economic progress of the country in many ways.
4. (iv) a dense and efficient network of transport and communication is also a pre-requisite for local, national and global trade.