Question
'International trade is considered the economic barometer for a country'. Discuss.
Solution
International trade is considered the economic barometer for a country:
(i)Advancement of international trade of a country is an index to its economic prosperity.
(ii)As the resources are space bound, no country can survive without international trade. Export and import are the components of trade.
(iii)The balance of trade of a country is the difference between its export and import. When the value of export exceeds the value of imports, it is called a favourable balance of trade. On the contrary, if the value of imports exceeds the value of exports, it is termed as unfavourable balance of trade.
(i)Advancement of international trade of a country is an index to its economic prosperity.
(ii)As the resources are space bound, no country can survive without international trade. Export and import are the components of trade.
(iii)The balance of trade of a country is the difference between its export and import. When the value of export exceeds the value of imports, it is called a favourable balance of trade. On the contrary, if the value of imports exceeds the value of exports, it is termed as unfavourable balance of trade.
