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| 1. |
Define foreign trade. What is the basic function of foriegn trade? (1+1 =2marks) |
| Answer» Foreign trade is the trade between different countries of the world. It consists of imports, exports . The inflow of goods in a country is called import trade whereas outflow of goods from a country is called export tradeBasic functions of foreign trade.\tForeign trade creates an opportunity for the produces to reach beyond the domestic markets.\tProducers can sell their produce not only in markets located within the country but can also compete in markets located in other countries of the world.\tFor the buyers, import of goods produced in another country is one way of expanding the choice of goods beyond what is domestically produced. | |