Answer :

there are 4 basic factors that influence the trade:

The geographical position of the country- if a country is near the coastal region then it is good for navigational trade. But if a country is situated in a mountainous region it becomes difficult to trade.


The natural resources- availability of natural resources determines the surplus resource to be traded to the countries having great demand of that natural resource. But deficit of natural resource of a country causes the negative balance of trade.


The economics of the country- the economic development of a country can directly affect the trade of a country. Developing countries have relatively backward economy, so the foreign trade is relatively less in that region.


The political factors- the political or international relation also impacts the trade between the countries. Countries which are allies help each other economically by trade. And the country’s bad political relation to the others can block the trade with country causing a trade deficit.


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