What is foreign trade short answer?
Foreign trade is the mutual exchange of services or goods between international regions and borders. There are varieties such as import and export. … Trade relations with other countries offer advantages to all participants: companies gain additional markets, increase their turnover and the number of their jobs.
Which of the following is the benefit of foreign trade for buyers?
Answer: Explanation: Trade promotes economic growth, efficiency, technological progress, and what ultimately matters the most, consumer welfare. By lowering prices and increasing product variety available to consumers, trade especially benefits middle- and lower-income households.
What is the function of foreign trade class 10?
It furnishes trade in the domestic market.
What are the functions of trade?
Regulation of relations, settlement of grievances, raising new demands on behalf of workers, collective bargaining and negotiations are the other key principle functions that these trade unions perform.
What is foreign trade and its importance?
Foreign trade helps in generating employment opportunities, by increasing the mobility of labour and resources. It generates direct employment in import sector and indirect employment in other sector of the economy. Such as Industry, Service Sector (insurance, banking, transport, communication), etc.
What is the need of foreign trade?
Ensures quality and standard goods – Foreign trade is highly competitive in order to maintain and increase the demand for goods, the exporting countries have to keep up the quality of goods. Thus foreign trade ensures that the quality and standardized goods are produced.
What is foreign trade class 11?
Foreign trade means the exchange of goods and services between two or more countries. Foreign trade creates a specialization in production and provides benefits of specialization. Foreign trade plays important role in the economic development of a country.
What then is the basic function of foreign trade discuss the steps taken by the government to attract foreign investment?
(i) The government has set up industrial zones called special Economic Zones (SEZs). … (ii) Companies who set up production units in the SEZs do not have to pay taxes for an initial period of five years. (iii) The government has also allowed flexibility in the labour laws to attract foreign investment.
What are the advantages of foreign trade to the producers and consumers?
FOREIGN trade creates an opportunity for the producers to reach beyond the domestic markets. Producers are able to sell their products not only in domestic market but also in other countries. Producers can also buy from the world market where raw material and labour is cheap.
What are the benefits of the foreign trade to producers and consumers?
The benefits of foreign trade to producers and consumers are: It created an opportunity for the producers to reach beyond the domestic markets i.e. markets of their own countries. It gave consumers a wider choice of good quality goods. It helps every country to make optimum utilisation of its natural resources.