Quick Answer: What is the need and importance of foreign trade?

Foreign trade helps in generating employment opportunities, by increasing the mobility of labour and resources. It generates direct employment in import sector and indirect employment in other sector of the economy. Such as Industry, Service Sector (insurance, banking, transport, communication), etc.

What is the importance of foreign trade class 10?

The exchange of goods among people, states and countries is referred to as trade. The international trade is important because: It helps in exchange of surplus goods with those of deficit countries through foreign trade. It helps in improving the quality of domestic goods.

What is an importance of foreign trade in development of a country?

Foreign trade enlarges the market for a country’s output. Exports may lead to increase in national output and may become an engine of growth. Expansion of a country’s foreign trade may energise an otherwise stagnant economy and may lead it onto the path of economic growth and prosperity.

What are the importance of foreign trade in India?

Foreign trade has played very important role for the development of our agriculture sector. Every year we export rice, cotton, fruits and vegetables to other countries. The export of goods makes our farmer more prosperous.

What are the advantages of foreign trade?

It enables a country to obtain goods by importing which it cannot produce due to higher costs at home. Foreign trade leads to specialize in the production of goods. Specialization leads to lowering of costs and improving the quality of goods. The countries, therefore, benefit from international trade.

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What is the importance of trade in economic development?

Trade is central to ending global poverty. Countries that are open to international trade tend to grow faster, innovate, improve productivity and provide higher income and more opportunities to their people. Open trade also benefits lower-income households by offering consumers more affordable goods and services.