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- Foreign trade is exchange of goods, and services across international borders or territories. In most countries, it represents a significant share of gross domestic product (GDP). It includes both export and import of goods and services.
- It allows countries to expand their markets and access goods and services that otherwise may not have been available domestically.
- As a result of foreign trade, the market becomes more competitive with the emergence of global value chains.
- This can ultimately result in more competitive pricing and cheaper products which can be reached through economy of scale. Moreover, the goods and services produced are of superior quality as the countries try to create comparative advantage by focusing on their core competencies.
- It also helps in transfer of technology, which ultimately aids in domestic use of factors of production in an efficient manner.
Foreign Trade Values
Major trading partners of India (2023-24 data)
Imports Exports
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