Question

why is international trade considered as a barometer for a country

Answer 1

Answer. International trade is considered the economic barometer for a country because Advancement of international trade of a country is an index to its economic prosperity. ... When the value of export exceeds the value of imports, it is called a favourable balance of trade.

(i)Advancement of international trade of a country is an index to its economic prosperity.

(ii)As the resources are space bound, no country can survive without international trade. Export and import are the components of trade.

(iii)The balance of trade of a country is the difference between its export and import. When the value of export exceeds the value of imports, it is called a favourable balance of trade. On the contrary, if the value of imports exceeds the value of exports, it is termed as unfavourable balance of trade.

International trade is the exchange of goods and services between countries. Trading globally gives consumers and countries the opportunity to be exposed to goods and services not available in their own countries, or which would be more expensive domestically.

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Answer 2

Explanation:

When trade takes place between two countries it is known as international trade.

(i) It is very important for the development of a country. Advancement of international trade of a country is an index to its economic prosperity.

(ii) As the resources are space bound, no country can survive without international trade.

(iii) It enables a country to earn foreign exchange which is needed to import essential goods. It is, therefore, considered the economic barometer for a country.