Question

State with reason whether you agree or disagree with the following statement:

Foreign trade leads to division of labour and specialization at world level.

State with reason whether you agree or disagree with the following statement:

Foreign trade leads to division of labour and specialization.

Options

• Agree

• Disagree

Answer 1

I agree with the above statement.

Reason:

1. Foreign trade refers to trade between different countries of the world.
2. Some countries have plentiful natural resources.
3. Ideally, such countries should export raw materials and import finished goods from the countries which have an abundant supply of skilled manpower.
4. Foreign trade enables countries to specialize in the production of those goods for which it has abundant resources.
5. Hence, we can say that foreign trade leads to division of labour and specialization at world level.