Which of the following is NOT the basis of international trade?
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → Even distribution of resources
Countries trade because they differ: one has what another lacks.
Option (1) Difference in national resources — A basis of international trade. Countries have different minerals, soils and climates. Each sells what it has in plenty and buys what it lacks.
Option (2) Stage of economic development — A basis of international trade. What a country trades changes as it develops. Farming countries sell farm products and buy manufactured goods, while industrial countries sell machinery and buy food grains and raw materials.
Option (3) Extent of foreign investment — A basis of international trade. Developing countries often lack money for mining, oil drilling or plantations. When rich countries invest there, they get food and minerals back and new markets for their goods, so trade grows.
Option (4) Even distribution of resources — Not a basis of international trade. Resources are unevenly distributed. If every country had the same resources, there would be little to exchange.
NCERT (2026-27): “Basis of International Trade … (i) Difference in national resources: The world’s national resources are unevenly distributed because of differences in their physical make up i.e. geology, relief soil and climate.” |