Why Does International Trade Exist?
International trade results from specialization in production. It benefits the global economy when different countries specialize and divide labor in producing goods or providing services. Each specialization can lead to trade. Therefore, international trade is based on the principles of comparative advantage, complementarity, and the transferability of goods and services, which ideally should benefit all trading partners.
In modern times, trade forms the foundation of the world’s economic organization and is closely linked to the foreign policies of nations. With advanced transportation and communication systems, no country is willing to forgo the benefits derived from participating in international trade.
Chapter 8 International Trade| Class 12 Geography Notes
Class 12 Geography Notes: International Trade is an important topic in CBSE Class 12 Geography. These notes are created by subject experts to help students understand the topic easily. These notes cover important concepts like the significance of international trade, different types of trade, and concerns related to it.
With these notes, students can prepare well for their exams and improve their understanding of the subject.
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