Question

How has foreign trade been integrating markets of different countries? Explain with examples.

Answer 1

• Trade promotes the competition both within as well as outside the nation. Producers of different countries now closely compete against each other even though they are separated by thousands of miles.
• Rapid improvement in information and communication technology has been one major factor that has stimulated the Globalisation process which means integrating the economy of a country with the economies of other countries under conditions of free flow of trade and capital and movement of persons across borders.
• With the expansion of trade the choice of goods in market rises. Consumers get more variety and quality goods at cheaper rates. 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 the trade, goods travel from one market to another. Choice of goods in the markets increases.