Why did classical economists consider trade as the ‘engine of growth’? What is the counter-view projected to this? Discuss
Answers
Answered by
3
i hope help you
In this article we will discuss how trade can contribute to economic growth of a country.
Although the rate of economic growth and the space and pattern of economic development depends primarily on internal conditions in developing countries, international trade can make significant contribution to economic development. The traditional theories of trade examine how growth in production capabilities can affect international trade.
Clearly, growth can have a major impact on international trade. There is also likely to be an impact in the other direction—from trade to growth. Exposure to international trade can have an impact on how fast a country’s economy can grow and how fast its production facilities are growing over time.
In this article we will discuss how trade can contribute to economic growth of a country.
Although the rate of economic growth and the space and pattern of economic development depends primarily on internal conditions in developing countries, international trade can make significant contribution to economic development. The traditional theories of trade examine how growth in production capabilities can affect international trade.
Clearly, growth can have a major impact on international trade. There is also likely to be an impact in the other direction—from trade to growth. Exposure to international trade can have an impact on how fast a country’s economy can grow and how fast its production facilities are growing over time.
Similar questions