Question
“Trade plays an important role in boosting the economy of a country.” Describe with examples.
Solution
Trade is the base of the world economy because:
(i) No country in the world is self-sufficient in production of all its requirement. So the demand of products in which a country is lagging, is met by the countries which have those products in surplus.
(ii) Many developing countries which lack in industrial and technological development fulfil their demand of various technologies through imports.
(iii) Several countries in Africa earn money by exporting the large number of primary products. The money earned by the export of these products is spent in the development of a country.
(iv) Some countries are known for the production of certain goods, e.g., China silk, Swiss watches and chocolates. The specialities of these products are acclaimed internationally by experts. Export of these products is the major source of earning for these countries.
