write a note on forentrade write its virtue and fults
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Answer:
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Explanation:
Meaning of International Trade
International trade is referred to as the exchange or trade of goods and services between different nations. This kind of trade contributes and increases the world economy. The most commonly traded commodities are television sets, clothes, machinery, capital goods, food, and raw material, etc.,
International trade has increased exceptionally that includes services such as foreign transportation, travel and tourism, banking, warehousing, communication, advertising, and distribution and advertising. Other equally important developments are the increase in foreign investments and production of foreign goods and services in an international country. This foreign investments and production will help companies to come closer to their international customers and therefore serve them with goods and services at a very low rate.
All the activities mentioned are a part of international business. It can be concluded by saying that international trade and production are two aspects of international business, growing day by day across the globe.
Also Read: What is the Difference between Trade and Commerce?
Reasons for International Trade
(1) Production
It is not possible for a single country to produce equally at a cheap cost.
That is why international trade is taken into account.
(2) Factors of Production
Factors of production like labour, capital raw material,
For producing goods & services which are available at different rates in different countries.
(3) Cost of Production
Each country finds it advantageous to produce only those goods & services
That it can produce efficiently.
Rest of the activities is rest to other countries at a lower cost.
(4) Resources Distribution
Many of the times companies face problems in the availability of natural resources.
There is an unequal distribution of the resources in the country.
(5) Examples
Different countries are specialized in different sectors like
In India, Maharashtra is involved in textiles, West Bengal in jute products, Haryana and Punjab in food products, Kerala in spices, etc.
Same is categorized for other countries.