SSC MTS EXAM

Detailed explanation-1: -(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-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: -It involves the investment made by a foreign company into another company based in a different country. The main purpose of foreign trade is as follows: To help countries access goods and services that they need from international markets. To sell their products in those markets and earn foreign exchange.