Question
Mention the different phases of international trade.
Solution
Trade has undergone fundamental changes over times both in quality and quantity with technology as a driving force.
(i) In the first phase primary conditions is raw material, minerals and food products dominated.
(i) In the first phase primary conditions is raw material, minerals and food products dominated.
(ii) Second phase: In the second phase it was Industrial Revolution in Europe. Manufacturing goods accounted for the largest share of the international trade although trade in primary commodities during this period still took place.
(iii) Third phase: This phase is marked by the dominance of service commodities. Services have become global commodities and are gaining importance with the improvement in transportation and information technology.
