Question

What is trade ? Explain the importance of international trade

Answer 1

Trade refer to the prosess of traveling of goods from one country to another country .
The importantce of international trade is ;

● It is the main channel for connecting countries : goods travel from one markets to another country .
● Choices rises : choices of goods in the market rises .
● Impact on prices : prices of simmilar goods in two markets tend to be equal because of international trade .
● competition : producer in two countries closesly compete with each other.
● Expansion of local market.

Answer 2

The exchange of goods among people, states and countries is rererred to as trade.
Importance :(a) International trade of a country is an index to its economic prosperity.(b) It is considered the economic barometer for a country.(c) As the resources are space bound, no country can survive without International trade.(d) Countries have trade relations with the major trading blocks.(e) Exchange of commodities and goods have been superseded by the exchange of information and knowledge.