Explain the importance of international trade.

The exchange of goods among people and countries is called trade. Trade between the two countries is called international trade. The importance of international trade is explained below:

a. The advancement of International Trade is an index of the economic prosperity of a country.

b. It is called the economic barometer of a country.

c. The exchange of goods among countries is considered to be even more important than the exchange of information and knowledge.

d. It is the main channel of connecting countries.

e. It provides a large variety of goods to the consumers who now have a wider range of choices.

f. Prices of the same goods in the market tend to be equal because of international trade.

g. As the resources are space-bound no Country can survive without international trade.