What are the basic functions of foreign trade?

cbse
economics
globalisation-indian
cbse-class-10
cbse-class-10-social

#1

What are the basic functions of foreign trade?

Answer:

  • 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.