Practicing Success

Target Exam

CUET

Subject

General Test

Chapter

General Knowledge

Topic

Economics

Question:

"Foreign trade" involves trade between foreign countries. According to you, which of the following options is the result of foreign trade?

Options:

Exploitation of customers

Increased prices of the commodities

Integration of markets 

All of the above

Correct Answer:

Integration of markets 

Explanation:

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.