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Define foreign trade. What is the …

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Define foreign trade. What is the basic function of foriegn trade? (1+1 =2marks)
  • 1 answers

Gaurav Seth 6 years, 9 months ago

Foreign trade is the trade between different countries of the world. It consists of imports, exports . The inflow of goods in a country is called import trade whereas outflow of goods from a country is called export trade

Basic functions of foreign trade.

  • Foreign trade creates an opportunity for the produces to reach beyond the domestic markets.
  • Producers can sell their produce not only in markets located within the country but can also compete in markets located in other countries of the world.
  • For the buyers, import of goods produced in another country is one way of expanding the choice of goods beyond what is domestically produced.
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