Question

why foreign trade results in connecting the markets or integration of markets in different countries?

Answer 1

Answer:

Hey Buddy, Here's your answer

• Foreign trade helps companies to sell their products internationally rather than only in the domestic market.
• Foreign trade brings foreign investment in the country.
• With the opening of trade, goods travel from one market to another. So the choice of goods in the markets increases. Prices of similar goods become equal. The producers of the two countries now closely compete against each other.
• Imported goods tend to increase the competition for the domestic producers of the country hindering their sales.
• Thus foreign trade integrates the markets of different countries.

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