Q. 83.8( 39 Votes )

How does foreign trade lead to integration of markets across countries? Explain with an example other than those given here.

Answer :

Increased trading activities among countries has strengthened markets in the following ways-


● Foreign trade has led to increased competition among the producers, which has further increased efficiency of the market.


● For the consumers, it has led to increased choices, which has led to increased consumer satisfaction.


● It has led to availability of goods and services which were not earlier available in the local market.


This is how markets are integrated through foreign trade. For example, Chinese electronic items are imported to India, and have proved to be a tough competition for less-technologically-advanced companies over here.


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