Explain with an example how the opening up of foreign trade results in connecting the markets of different countries.
Foreign trade provides opportunities for both
producers and buyers to reach beyond the markets of their own countries. Goods travel from one country to another.
Competition among producers of various countries as well as buyers prevails. Thus, foreign trade leads to integration of markets across countries. For example, during Diwali season, buyers in India have the option of choosing between Indian and Chinese decoratiVe lights and bulbs. So, this provides an opportunity to expand business.