International trade is mutually beneficial to nations.’’ Analyse the statement.

OR

‘‘The difference in national resources is the basis of international trade.’’ Analyse the statement.

International trade means the exchange of goods and services among different countries. International trade was very limited before when transport facilities weren’t technologically advanced. So, people focused more on basic necessities like food and clothes and only rich people bought jewellery or expensive dresses, and this was called luxury trade. With the growth of industrialization, international trade started to grow.

International trade is mutually beneficial to nations. Today when the transport facilities are technologically advanced it becomes easier for countries to import raw materials like oil, rice, wheat, etc. India is one of the largest exporters of rice, petroleum, sugar, etc. This helps in the expansion of markets, ensures development, diffusion of knowledge and culture, more regional specialization and better standards of living. Hence, international trade helps in mutually beneficial to all nations.

OR

International trade is the exchange of goods and services among different nations. The natural resources are unevenly distributed all around the world because of its different physical makeup i.e. relief soil, geology and climate.

• Geological structure: The geological structure of a place includes its topographical structure and mineral base. This determines the crops and animals found in the place. Lowlands are good for growing crops and for living whereas, mountainous regions attract tourists.

• Mineral resources: The minerals are unevenly distributed all over the world. The presence of a mineral base in a region accelerates industrial growth.

• Climate: The climate of a place determines the range of flora and fauna that grows in a region. Colder climates are more suitable for wool production whereas warmer climates are good for the production of coconut, banana, etc.