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How has foreign trade been integrating markets of different countries? Explain with examples.

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Foreign Trade is Integrating markets of different countries – 

(i) Foreign trade creates an opportunity for the producers to reach beyond the domestic markets. 

(ii) Producers can sell their products in the markets located in other countries. 

(iii) It helps for expanding the choice of goods beyond domestic market. 

(iv) It is a main channel connecting countries. 

(v) Highly helpful for extensive trade. 

(vi) The trading interest attracts various trading companies. 

(vii) Any other relevant point. 

Any five points to be explained.

Detailed Answer : 

Foreign trade been integrating markets of different countries by the following ways – 

(i) Foreign trade increases competition among companies in terms of quantity, quality and price.

(ii) Foreign trade enables people to sell their produce in international market rather than only in domestic market. For example, Chinese toys in India and Indian readymade garments in other countries have resulted in connecting the markets. 

(iii) Foreign trade transport of one nation’s goods to other country facilitates the exchange of tradition and culture such as garments like saris, kurta, ghaghra, etc., sold by Indian traders and jeans jerseys jackets sold by international traders to India. 

(iv) The Indian producers can sell their produce not only in domestic markets but also compete in markets located in other countries of the world. 

(v) Foreign trade increases the exchange of foreign currency.

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