How can consumers and producers be benefited from foreign trade? Expla

1.	How can consumers and producers be benefited from foreign trade? Explain with examples
Answer» Foreign trade helps each country to specialize in the production of those goods, which best suits it environments. It, thus leads to maximum use of its natural resources. Availability of Goods It enables a country to obtain goods by importing which it cannot produce due to higher costs at home. Specialization Foreign trade leads to specialize in the production of goods. Specialization leads to lowering of costs and improving the quality of goods. The countries therefore, benefit from international trade. Economics of Large Scale The expansion of foreign trade leads to production of goods on large scale. The economics of large scale production (both external and internal) are thus availed of by the trading countries of the world. Stability in Prices Foreign trade equalizes prices of goods throughout the world. AdvanceEquipment’s The developing countries can import latest machinery and know how from the developed world. They can thus speedily break the vicious circle of poverty. Benefits to Consumers The consumers are able to get those goods which are not produced in their own countries. Development of the means of Communication and Transport Different Countries may dispose of those goods which they have in surplus and obtain goods which they are short in supply. The trades between the countries lead to development in the means of communications and transport. Ability to Face Natural Calamities International trade helps a country to face naturals incidents such as Earthquake, floods etc. The effected countries are able to import goods which they are short in supply. Discouragement to Monopolies International trade discourages the formation of monopolies in a country. If there is a combination of certain business units and they raise the prices of goods higher than the market, the government imports those goods to reduce the prices in the country. Foreign trade helps each country to specialize in the production of those goods, which best suits it environments. It, thus leads to maximum use of its natural resources. Availability of Goods It enables a country to obtain goods by importing which it cannot produce due to higher costs at home. Specialization Foreign trade leads to specialize in the production of goods. Specialization leads to lowering of costs and improving the quality of goods. The countries therefore, benefit from international trade. Economics of Large Scale The expansion of foreign trade leads to production of goods on large scale. The economics of large scale production (both external and internal) are thus availed of by the trading countries of the world. Stability in Prices Foreign trade equalizes prices of goods throughout the world. AdvanceEquipment’s The developing countries can import latest machinery and know how from the developed world. They can thus speedily break the vicious circle of poverty. Benefits to Consumers The consumers are able to get those goods which are not produced in their own countries. Development of the means of Communication and Transport Different Countries may dispose of those goods which they have in surplus and obtain goods which they are short in supply. The trades between the countries lead to development in the means of communications and transport. Ability to Face Natural Calamities International trade helps a country to face naturals incidents such as Earthquake, floods etc. The effected countries are able to import goods which they are short in supply. Discouragement to Monopolies International trade discourages the formation of monopolies in a country. If there is a combination of certain business units and they raise the prices of goods higher than the market, the government imports those goods to reduce the prices in the country.

How can consumers and producers be benefited from foreign trade? Explain with examples

Answer»

Foreign trade helps each country to specialize in the production of those goods, which best suits it environments. It, thus leads to maximum use of its natural resources.

Availability of Goods

It enables a country to obtain goods by importing which it cannot produce due to higher costs at home.

Specialization

Foreign trade leads to specialize in the production of goods. Specialization leads to lowering of costs and improving the quality of goods. The countries therefore, benefit from international trade.

Economics of Large Scale

The expansion of foreign trade leads to production of goods on large scale. The economics of large scale production (both external and internal) are thus availed of by the trading countries of the world.

Stability in Prices

Foreign trade equalizes prices of goods throughout the world.

AdvanceEquipment’s

The developing countries can import latest machinery and know how from the developed world. They can thus speedily break the vicious circle of poverty.

Benefits to Consumers

The consumers are able to get those goods which are not produced in their own countries.

Development of the means of Communication and Transport

Different Countries may dispose of those goods which they have in surplus and obtain goods which they are short in supply. The trades between the countries lead to development in the means of communications and transport.

Ability to Face Natural Calamities

International trade helps a country to face naturals incidents such as Earthquake, floods etc. The effected countries are able to import goods which they are short in supply.

Discouragement to Monopolies

International trade discourages the formation of monopolies in a country. If there is a combination of certain business units and they raise the prices of goods higher than the market, the government imports those goods to reduce the prices in the country.