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प्रश्न
Explain how the 'size of population' and the stage of 'economic development' are the bases of international trade.
उत्तर
- Size of population:
- Densely populated countries have large volume of internal trade but little external trade because most of the agricultural and industrial production is consumed in the local markets.
- Standard of living of the population determines the demand for better quality imported products because with low standard of living only a few people can afford to buy costly imported goods.
- Stage of economic development:
- At different stages of economic development of countries, the nature of items traded undergo changes.
- In agriculturally important countries, agro products are exchanged for manufactured goods.
- whereas industrialised nations export machinery and finished products and import food grains and other raw materials.
- At different stages of economic development of countries, the nature of items traded undergo changes.
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