Question

Why is international trade considered the econonomic barometers explain​

Answer 1

Answer:

International trade is considered as a barometer of economic progress of the country as it indicates the share of a country in world trade. It also leads to inflow of foreign exchange and capital investments in the country and contributes to infrastructural growth.

Answer 2

Answer:

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.