Question

When the trade of one country purchases the goods from the trader of another country, it is known as export trade. (State with reason whether the given statement is true or false)

Answer 1

The above stated statement is false.

Export trade refers to the goods that are transported to a foreign country.

On the other hand, purchasing goods from a foreign country for one’s own country is known as import trade.

Generally, only those goods that cannot be produced efficiently with low cost are imported from another country.  

Along with export, import of goods and services are essential for a country’s economy to flourish.