Explain any five bases of international trade.

Bases of International trade:

(i) Difference in national resources: The world’s national resources are unevenly distributed because of differences in their physical make up i.e. geology, relief soil and climate.

(ii) Population factors: The size, distribution and diversity of people between countries affect the type and volume of goods traded.

(iii) Stage of economic development: At different stages of economic development of countries, the nature of items traded undergo changes.

(iv) Extent of foreign investment: Foreign investment can boost trade in developing countries which lack in capital required for the development of mining, oil drilling, heavy engineering, and lumbering and plantation agriculture.

(v) Transport: With expansions of rail, ocean and air transport, better means of refrigeration and preservation, trade has experienced spatial expansion.