Answer:
The basis of International Trade are: (i) Difference in national resources: The resources are unevenly distributed due to the differences in their physical make up i.e. geology, relief soil, and the climate. (ii) Population factors: Under these factors, the size, distribution and diversity of people between countries affect the type and volume of goods. (iii) Stage of economic development: The nature of items traded undergoes changes due to the stage of economic development of country. As in agriculturally important countries, agro products are exchanged for manufactured goods. (iv) Extent of foreign investment: Foreign investment helps in trading for the developing countries where lack of capital affects the development of mining, oil drilling, heavy engineering, lumbering, and plantation agriculture. (v) Transport: Inadequate and inefficient means of transport restricted trade to only local area, but better transport and better means of refrigeration and preservation expand the trade internationally.
You need to login to perform this action.
You will be redirected in
3 sec
