"Advancement of international trade of a country is an index to its prosperity" Support the statement with suitable…
Answers:
Advancement of international trade of a country is an index to its prosperity:
1. Resources are space-bound so countries need to trade with each other to procure various resources.
2. When the value of exports exceeds the value of imports, its favourable balance of trade. This shows a positive condition of the economy.
3. When the value of imports exceeds the value of exports, its unfavourable balance of trade. This is negative for an economy.
4. Increased international trade shows increased relations between countries which is mutually beneficially.
5. International trade is also considered an economic barometer for a country because it’s a huge source of income as well as a sign of development.