GENERAL KNOWLEDGE

Detailed explanation-1: -Foreign trade creates an opportunity for the producers to reach beyond the domestic markets, i.e., markets of their own countries.

Detailed explanation-2: -Foreign trade provides opportunities for both producers and buyers to reach beyond the markets of their own countries. Goods travel from one country to another. Competition among producers of various countries as well as buyers prevails. Thus foreign trade leads to integration of markets across countries.

Detailed explanation-3: -Trading globally gives consumers and countries the opportunity to be exposed to goods and services not available in their own countries, or more expensive domestically.

Detailed explanation-4: -The benefits of foreign trade to producers and consumers are: It created an opportunity for the producers to reach beyond the domestic markets i.e. markets of their own countries. It gave consumers a wider choice of good quality goods. It helps every country to make optimum utilisation of its natural resources.