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Question

India's port in Mumbai imports iron from the USA. Some of the iron is sent to Delhi, while the surplus is exported to Sweden.

Identify the factors that will affect the trade.

A
Quality of roads and highways from Mumbai to Delhi
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B
Value of Indian currency with respect to Sweden's currency
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C
Judicial system, and the laws of Maharashtra and Delhi
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D
Political relations between India and Sweden
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Solution

The correct option is D Political relations between India and Sweden
The trade between Mumbai to Delhi is domestic, while the trade between India to Sweden is international. Factors like quality of transportation, population size, and availability of natural resources affect domestic trade. Factors like political relations, government policies, value of currency, judicial system, and the laws of India and Sweden affect international trade.

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