Q. 23

How has foreign trade been integrating markets of different countries in the world? Explain with examples. [CBSE 2012]

Answer :

1. Foreign trade creates an opportunity for the producers to reach beyond the domestic markets, i.e., markets of their own countries.

2. The competition is thus not just within the county, but also from the producers of different countries.

3. The buyers also get benefitted as they now have more choices and a wider range of products to choose from.

4. With the opening of trade, goods travel from one market to another. Choice of goods in the markets rises. Prices of similar goods in the two markets tend to become equal.

5. Producers in the two countries now compete against each other even though they are separated by thousands of miles.

A recent example of this phenomena would be the sale of Chinese toys and lights in India, which led to a lowering of prices of these products in both the countries.

Explanation- This phenomenon sometimes leads to losses, or to a deterioration in the quality of the manufactured good, as is the case with sale of Chinese toys in India.

Rate this question :

How useful is this solution?
We strive to provide quality solutions. Please rate us to serve you better.
Related Videos
Let's understand Indian EconomyLet's understand Indian EconomyLet's understand Indian Economy33 mins
Know About SST in NTSE 2020Know About SST in NTSE 2020Know About SST in NTSE 202038 mins
Globalisation and its ImpactGlobalisation and its ImpactGlobalisation and its Impact29 mins
Learning Important concepts - Sectors of Indian EconomyLearning Important concepts - Sectors of Indian EconomyLearning Important concepts - Sectors of Indian Economy53 mins
Indian Superstitions and the Possible Logic Behind ThemIndian Superstitions and the Possible Logic Behind ThemIndian Superstitions and the Possible Logic Behind Them30 mins
Exploring the Indian Political world -IIExploring the Indian Political world -IIExploring the Indian Political world -II56 mins
Champ Quiz | Decoding the Economic SectorsChamp Quiz | Decoding the Economic SectorsChamp Quiz | Decoding the Economic Sectors52 mins
NCERT | Lifelines of National EconomyNCERT | Lifelines of National EconomyNCERT | Lifelines of National Economy55 mins
Lets Learn About Human EyeLets Learn About Human EyeLets Learn About Human Eye45 mins
Indian Nationalist MovementIndian Nationalist MovementIndian Nationalist Movement29 mins
Try our Mini CourseMaster Important Topics in 7 DaysLearn from IITians, NITians, Doctors & Academic Experts
Dedicated counsellor for each student
24X7 Doubt Resolution
Daily Report Card
Detailed Performance Evaluation
caricature
view all courses
RELATED QUESTIONS :

What is meant by foreign investment?

Together With Social Science