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Standard XII
Business Studies
Political Environment
Foreign trade...
Question
Foreign trade involves much greater risk than home trade.
A
True
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B
False
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Solution
The correct option is
A
True
Economic
dependence: Too much dependence on imports may undermine the economy of a country.
Restricted growth of home industries:
Foreign trade
may discourage the growth of domestic industries.
Misuse of natural resources.
Political exploitation.
Import of harmful goods.
Rivalry among nations.
Invasion of culture.
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