How does foreign trade lead to integration of markets across countries? Explain with an example other than those given here.
For a long time foreign trade has been the main channel connecting countries. Even as early as the 8th century extensive trade took place between South Asia, including India, and the East and West. Trading interests attracted various trading companies such as the East India Company to India.
Foreign trade created an opportunity for the producers to reach beyond the domestic markets and market their goods in other countries of the world. This resulted in the movement of goods and people.
With the liberalisation of foreign trade, electronic goods, like digital cameras and lap top computers have flooded the Indian market from foreign countries. At the same time Indian textiles and leather goods are available all over the world. So foreign trade has lead to integration of markets.
What are the various ways in which MNCs set up, or control, production in other countries?
How has liberalisation of trade and investment policies helped the globalisation process?
What was the reasons for putting barriers to foreign trade and foreign investment by the Indian government? Why did it wish to remove these barriers?
Why do developed countries want developing countries to liberalise their trade and investment? What do you think should the developing countries demand in return?
How does foreign trade lead to integration of markets across countries? Explain with an example other than those given here.