ECONOMICS
TRADE EXCHANGE AND INTERDEPENDENCE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Opportunity to specialize
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Encouraging exports and discouraging imports
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Increase market share
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Increased revenues
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Attracting foreign investor
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Detailed explanation-1: -One of the significant advantages of international trade is market diversification. Focusing only on the domestic market may expose you to increased risk from downturns in the economy, political factors, environmental events and other risk factors.
Detailed explanation-2: -Answer: (i) Foreign trade creates opportunities for producers to reach beyond domestic markets. Producers can compete in markets located in other countries of the world. Similarly, for the buyers, import of goods from another country leads to expanding choice of goods beyond what is domestically produced.
Detailed explanation-3: -International trade involves the licensed exchange of goods across borders. It leads to the establishment of trade agreements and trade policy. These encourage harmonious relationships between nations that rely on one another for a better standard of living across their populations.
Detailed explanation-4: -More Job Opportunities. Expanding Target Markets & Increasing Revenues. Improved Risk Management. Greater Variety of Goods Available. Better Relations Between Countries. Enhanced Company Reputation. Opportunities to Specialize. 31-Aug-2022