Role of Foreign trade

MEANING OF FOREIGN TRADE

Foreign trade is the mutual exchange of goods or services between international regions and borders. It is important for national economy and world relations. Among the items commonly traded are:- Consumer Goods, such as T.V. sets and clothing; Capital goods, such as Machinery; and Raw Materials and food.

TYPES

Foreign trade is of 3 types:-

1) IMPORT TRADE- Trade where the goods or services are purchased from other countries.

2) EXPORT TRADE- Trade where the goods or services are sold to other countries.

3) ENTREPORT TRADE- Trade where goods are imported in order to re-export them. For example, If India imports rubber from Thailand, processes it, re-exports it to Japan.

ROLE/IMPORTANCE OF FOREIGN TRADE

https://edurev.in/studytube/Role--Importance-of-Foreign-Trade-in-India-Sector-/e492d29d-94ce-4391-b872-b38a88022696