‘‘The advancement of international trade of a country is an index of its economic development.’’ Justify the statement.

The advancement of international trade of a country is an index of its economic development. The above point can be justified by the following points:

• Trade helps to expand the market of the product it trades with.

• Trade is the vehicle for the transmission of ideas, technology and capital among different nations which ultimately leads to the economic development of a country.

• It helps in large foreign exchange generation which is highly useful for the country.

• Trade can help in increasing the production of different goods in the nation and creates huge employment opportunities.

Thus for all these reasons trade is known as the driver of economic development of a nation.