Why national are involved in foreign trade discuss in brief?

international-trade
cbse

#1

Following are the reasons for international Business:
(a) International specialisation : Each country finds it advantageous to produce the goods in which it is specialised at home and procuring the <pst through trade with other countries which the other countries can produce at lower cost due to specialisation.
(b) Differences in natural resources and geographical conditions : Abundance of natural resources and favourable geographical conditions of a country brings difference in its production pattern as compared to others.
© Cost of production : Differences in production cost gives advantageous position to the countries producing at low cost than others to export it to other countries and importing the goods for which they have high production cost.