Question

‘‘Advancement of international trade of a country is an index to its prosperity.’’ Support the statement with suitable examples.(5marks)

Answer 1

International Trade is business more than the domestic business. Any country engaged in international trade could produce output more than what is possible with its own resources. Moreover, countries get into trade due to lack of resources or comparative advantage. Advancement of international trade means, a country is getting involved in trade with more and more foreign countries. This means there are imports and exports taking place. Opening up to foreign trade means that a country is able to stand global completion and has the capability to meet foreign demand which is more than what is demanded domestically. Foreign trade also affects the economic conditions of the domestic country, Thus, when there is an advancement in international trade, it suggests the country is ready for the global challenges.