Question
Describe the advantages of foreign trade.
Solution
Advantages of Foreign Trade:
(i)Foreign trade creates an opportunity for the producers to reach beyond the domestic markets, i.e., markets of their own countries.
(ii)Producers can sell their produce not only in markets located within the country but can also compete in markets located in other countries of the world.
(iii)Similarly, for the buyers, import of goods produced in another country is one way of expanding the choice of goods beyond what is domestically produced.
