Question

Write a note on the changing nature of the international trade in the last fifteen years.

Answer 1

1. In many countries like China, Russia etc. the policies of free market are being adopted. These policies are known by the name of globalisation and liberalisation.

2.As a result of globalisation and liberalisation, huge amnts of foreign direct investment (FDI) are flowing from developed to developing countries like India and China

3.The World Trade Organisation has been set up. It ensures more free trade among countries.

4.The volume of trade has expanded like never before since MNCs have setup their production units in many of the developing countries. Thus many more guds r being traded.

Answer 2

$\huge\star{\red{\underline{\underline{\mathfrak{Explanation:}}}}}$

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• $\leadsto$Trade between countries is known as international trade. International trade has undergone a vast change in the last fifteen years.

• $\leadsto$Exchange of goods and commodities have been superseded by the exchange of information and knowledge.

• $\leadsto$For e.g. – India has emerged as a software giant at the international level and it is earning large foreign exchange through the export of information technology.

• $\leadsto$International trade also depends on the relationship between the countries and other external factors like duties and tariffs on the transportation of goods.

• $\leadsto$In the last fifteen years, different trade blocks have emerged which have changed how international trade was conducted previously.