Question

Explain the importance of India's foreign trade.

Answer 1

Importance of Foreign trade

(1) It makes full use of natural resources. If some resourcesare in surplus in a country then by foreign trade it can be sold in those countries from where it gets its highest price.

(2) As a foreign trade we can get cheap and quality goods from other countries.

(3) It promotes cultural cooperation and mutual confidence among the people of different countries.

(4)This is the most important source of foreign exchange.

(5) By imposing the import and export duties government earns revenue.