'Foreign trade integrates the markets in different countries.' Support the statement with arguments.
Foreign trade creates an opportunity for the producers to reach beyond the domestic markets, the markets of their own countries. Producers can sell their produce not only in markets located within the country but also compete in markets located in other countries of the world. 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. In general, with the opening of trade, goods travel from one market to another. And, producers in the two countries now closely compete against each other even though they are separated by thousands of miles! Foreign trade thus results in connecting the markets or integration of markets in different countries.
