Practicing Success
"Foreign trade" involves trade between foreign countries. According to you, which of the following options is the result of foreign trade? |
Exploitation of customers Increased prices of the commodities Integration of markets All of the above |
Integration of markets |
With the opening of trade, goods travel from one market to another. Choice of goods in the markets rises. Prices of similar goods in the two markets tend to become equal. And, producers in the two countries now closely compete against each other even though they are separated by thousands of miles! Foreign trade thus results in connecting the markets or integration of markets in different countries. |