What is trade? Explain the importance of international trade

What is trade? Explain the importance of international trade.

Answer:
Trade: The exchange of goods among people, states and countries is referred to as trade.

Importance:

  • International trade of a country is an index to its economic prosperity.
  • It is considered the economic barometer for a country.
  • As the resources are spate bound, no country can survive without international trade.
  • Countries have trade relations with the major trading blocks.
  • Exchange of commodities and goods have been superseded by the exchange of information and knowledge.