Why do countries participate in foreign trade?
Download our app for free and get startedPlay store
According to classical economists, countries participate in foreign trade because they cannot produce all the goods and services competitively. A country's resources are suitable only for the production of certain specific goods and services. Therefore, the country should produce only those goods for which its resources are suitable, thus giving it a cost advantage, and import other goods from foreign countries.
art

Download our app
and get started for free

Experience the future of education. Simply download our apps or reach out to us for more information. Let's shape the future of learning together!No signup needed.*

Similar Questions

  • 1
    Highlight the achievements of India's industrial sector during the first seven plans (1950-91).
    View Solution
  • 2
    Distinguish betweetr planning objectives and plan objectives.
    View Solution
  • 3
    Why was there a need for reform of economic policy in 1990? Explain.
    View Solution
  • 4
    'Subsidies provide an incentive for wasteful use of resources.'Do you accept/ reject? Justify your answer.
    View Solution
  • 5
    How does industries help to strengthen the economy of a country?
    View Solution
  • 6
    Why was public sector given a leading role in industrial development during the planning period?
    View Solution
  • 7
    What was the need for economic reforms in 1991?
    View Solution
  • 8
    What is Green Revolution ? Why and when was it implemented?
    View Solution
  • 9
    Write the importance of subsidies in relevance to Indian farmers.
    View Solution
  • 10
    What has been the impact of self-reliance on Indian economy?
    View Solution