Question: What are the importance of trade in Nigeria?

Export trade is a catalyst for sustainable economic development. Through export trade, Nigeria earns vital foreign exchange, increases its revenue base and may avoid trade deficits. It also helps to consolidate economic diversification.

What is the importance of trade?

The process of economic specialization and trade, in which individuals focus on doing the things they do best and then exchange the products of their labor with others who are likewise concentrating on their own areas of excellence, leads to much higher levels of production of goods and services as well as the most …

What is trade explain the importance of trade?

The exchange of goods among people states and countries are referred to as a trade. Importance:i International trade of a country is an index to its economic prosperity. ii It is considered the economic barometer for a country. iii As the resources are space-bound no country can survive without international trade.

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What is the importance of trade Class 10?

The importance of trade is:

1. No country can survive without international trade because resources are space bound. 2. Advancement of international trade of a country leads to its economic prosperity because such a trade provides so many jobs to workers as well as business to traders.

What is the importance of international trade?

International trade allows countries to expand their markets and access goods and services that otherwise may not have been available domestically. As a result of international trade, the market is more competitive. This ultimately results in more competitive pricing and brings a cheaper product home to the consumer.

What are advantages and disadvantages of international trade?

Top 10 International Trade Pros & Cons – Summary List

International Trade Pros International Trade Cons
Faster technological progress Depletion of natural resources
Access to foreign investment opportunities Negative pollution externalities
Hedging against business risks Tax avoidance

What is the importance of international trade in globalization?

Thus, international trade can be important for business, due to profits growth prospects, reduced dependence on known markets, business expansion, etc. The increase of international trade over the years has been a result of the globalization process.

What is the importance of trade agreements?

Free trade agreements don’t just reduce and eliminate tariffs, they also help address behind-the-border barriers that would otherwise impede the flow of goods and services; encourage investment; and improve the rules affecting such issues as intellectual property, e-commerce and government procurement.

What is the role of trade in economic development?

Trade is central to ending global poverty. Countries that are open to international trade tend to grow faster, innovate, improve productivity and provide higher income and more opportunities to their people. Open trade also benefits lower-income households by offering consumers more affordable goods and services.

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What is trade and its features?

The term “trade” generally means exchange of goods among different individuals. … It is the movement of goods and services from one Geographical Boundary to another. It is trading with foreign countries. But it is only an extension of internal or domestic trade.

What are the two components of international trade class 10?

The two components of international trade is export and import.

What do you mean by trade class 10?

The exchange of goods among people, states and countries is referred to as a trade. Trade between two countries is called international trade, while trade occurring in a region within the same country is called local trade. Answer verified by Toppr.

What are 3 benefits of international trade?

What Are the Advantages of International Trade?

  • Increased revenues. …
  • Decreased competition. …
  • Longer product lifespan. …
  • Easier cash-flow management. …
  • Better risk management. …
  • Benefiting from currency exchange. …
  • Access to export financing. …
  • Disposal of surplus goods.


What are the features of international trade?

The following are the distinguishing features of international trade:

  • (1) Immobility of Factors: …
  • (2) Heterogeneous Markets: …
  • (3) Different National Groups: …
  • (4) Different Political Units: …
  • (5) Different National Policies and Government Intervention: …
  • (6) Different Currencies: …
  • Specific Terms: …
  • Heterogeneous Group:

What is international trade and its benefits?

International trade allows countries to exchange good and services with the use of money as a medium of exchange. … Nations with strong international trade have become prosperous and have the power to control the world economy. The global trade can become one of the major contributors to the reduction of poverty.

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