Question

Which one of the following is a basic function of foreign trade?

• A. It furnishes trade in the domestic market
• B. Goods and services are produced for internal market
• C. It gives opportunity for the reduction to reach beyond the domestic market
• D. all of these

Answer 1

Answer: (D)

all of these

(i) Foreign trade creates an opportunity for the produces to reach beyond the domestic markets.

(ii) Producers can sell their produce not only in markets located within the country but can also compete in markets located in other countries of the world.

(iii) For the buyers, import of goods produced in another country is one way of expanding the choice of goods beyond what is domestically produced.