Explain any six favourable conditions for the growth of international trade.

1. Natural resources of the respective countries : Some countries are rich in forest resources. Some have very rich fisheries, while the others have enormous cattle wealth. Some have rich soils and suitable climate for farming.

2. Highly Advanced Banking System : This facility has helped much in developing international trade by facilitating trade transactions.

The foreign exchange banks, International Monetary Fund and World Bank are playing very important roles.

3. Scientific Development : It has revolutionized the producing techniques in every sphere, namely farming, mining, fishing, forestry and manufacturing. Cold storage and refrigeration are the gifts of science.

4. Peace and co-operation : We are living in a world where there may be rivalries, yet there is universal desire for peace and co-operation. Without these two, the international trade cannot go on and in the absence of it economies of even the most developed countries are bound to shatter.

5. Scarcity of various commodities : There is no country in the world, which produces all its requirements, therefore, there is always a scarcity of number of commodities in every country. Some require consumer goods, the others need raw material. Yet others desire coal, petroleum and atomic minerals.

6. Development of Transport and Communication : We are living in a world which has developed various means of transport, namely the railways, highways-airways and ocean transport, telephone and wireless facilities etc. All these have contributed a great deal to the growth and development of international trade.