Question

How has foreign trade integrated markets of different countries in the world? Explain with examples.

Answer 1

Foreign trade been integrating markets of different countries by the following ways –

(i) Foreign trade increases competition among companies in terms of quantity, quality and price.

(ii) Foreign trade enables people to sell their produce in international market rather than only in domestic market. For example, Chinese toys in India and Indian readymade garments in other countries have resulted in connecting the markets.