why is trade necessary?explain with example
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Subject:
Social Sciences -
Author:
bridge -
Created:
1 year ago
Answers 1
Answer:
The exchange or transaction or buying and selling of goods between people to people or community to community is known as trade. It is necessary for satisfaction of human wants. It increases competition and lowers world prices which provides benefits to consumers by raising the purchasing power of their own income. It leads a rise in consumer surplus. It also breaks down domestic monopolies which face competition from more efficient foreign firms. A country cannot produce everything. Sometimes countries need a help of other. And during the export and import of good it creates a good relationship with other foreign countries. So it is very important.
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Author:
shyannegtp5
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