Answer each of the following questions in eight to ten sentences:

What is the need of foreign trade to a country?

Foreign trade is the trade that occurs between two different countries and includes exports, imports and entrepot trades. Natural resources are available in varying quantities all over the world. This makes all countries lack self-sufficiency when it comes to fulfilling their populations demands. Often countries that are rich in certain natural resources produce excess goods which are then exported to those countries that need those goods, but lack available natural resources to produce them. The countries that lack the natural resources need to import the required goods and hence trade relations are established. Foreign trades are also necessary to promote friendly relations between different countries.