Q. 24.0( 5 Votes )

What is the basic function of foreign trade?

Answer :

Foreign trade or international trade is the exchange of goods and services between countries. It is an important component of the economy. The basic function of international trade is the integration of markets in different countries. It will give a lot of opportunities and openings for the domestic producers and consumers to reach out beyond the domestic market. Producers can sell their commodities to buyers from around the world. Consumers also have the choice to select commodities produced beyond the domestic markets. The prices tend to be equal in both the markets gradually. Thus, foreign trade widens the markets for both produces and consumers and helps in connecting the markets worldwide.


Rate this question :

How useful is this solution?
We strive to provide quality solutions. Please rate us to serve you better.
Related Videos
Know About SST in NTSE 2020Know About SST in NTSE 2020Know About SST in NTSE 202038 mins
Let's understand Indian EconomyLet's understand Indian EconomyLet's understand Indian Economy33 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
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
Exploring the Indian Political world -IIExploring the Indian Political world -IIExploring the Indian Political world -II56 mins
Indian Nationalist MovementIndian Nationalist MovementIndian Nationalist Movement29 mins
Lets Learn About Human EyeLets Learn About Human EyeLets Learn About Human Eye45 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