Get premium membership and access revision papers with marking schemes, video lessons and live classes.

Processing. Please wait.

Meaning of international trade and its advantages

Answer Text:
INTERNATIONAL TRADE
A trade involving the exchange of goods and services between two or more countries. If the exchange is between two countries only, then it is referred to as bilateral trade, but if it is between more than two countries then it is referred to as multilateral trade.
Advantages of international trade:
-It enable the country to get access to wider range/variety of goods and services from other countries
-It earns the country revenue through taxes and licenses fees paid by the importers and exporters in the country
-It enable the country to dispose of its surplus goods and services thereby avoiding wastage
-It creates employment opportunities to the citizens of that country either directly or indirectly
-It may lead to the development of the country through importation of capital goods in to the country
-It encourages easy movement of factors of production across the borders of the countries involve