Describe briefly the advantages of external trade.

Explanation

Advantages of International or external Trade:


(i) Optimal use of natural resources:


International trade helps each country to make optimum use of its natural resources. Each country can concentrate on production of those goods for which its resources are best suited. Wastage of resources is avoided.



(ii) Availability of all types of goods:


It enables a country to obtain goods which it cannot produce or which it is not producing due to higher costs, by importing from other countries at lower costs.


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