Answer :

The different bases of international trade are as follows:

1. Difference in national resources – The distribution of resources across the world is different because of certain factors affecting its physical make up like geology, relief soil and climate.


a. Geological structure – It is important in determining the mineral base of the country and helpful in predicting the nature of crops and animals that can be raised. In lowland areas, agriculture opportunities are better while in mountainous regions tourism industry will flourish.


b. Mineral resources – Industries tend to develop in areas where better mineral resources are available.


c. Climate- It has a direct effect on the type of flora and fauna that will flourish in that region and given an idea of the products that can be produced there.


2. Population – The population of different countries vary from each other in terms of size, distribution and diversity. The cultural factors and size of population has an effect on the basis of international trade.


a. Cultural factors – The cultural factors affect the art and craft developments of that region and give a picture of what might be best produced there.


b. Size of population – The countries that are densely populated conduct internal trade on a large volume. In such countries most of the agricultural and industrial produce are consumed within the country by selling in local markets. The standard of the people living in a country also determine the quality of products that might be demanded.


3. Stage of economic development – Different countries operate in different stages of economic development and it has an impact on the nature of items traded. Countries rich in agriculture have to offer more agro products in exchange of manufactured goods while countries with flourishing industries prefer to export its machinery and finished goods in exchange of food grains and other materials.


4. Extent of foreign investment – The extent of foreign investment has a major impact on the type of goods imported or exported as the countries which get more investment are able to boost up their trade even if they are lacking sufficient capital. The developing countries tend to develop capital intensive industries and export their goods while in return they import food, minerals and work on expanding market for their finished goods.


5. Transport – Availability of proper transport facilities better trade opportunities. The trade has expanded in countries where rail, ocean and air transport facilities are better along with refrigeration and preservation options.


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