Question

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

Foreign trade plays an important role in economic development of a country.

विकल्प

• Agree

• Disagree

Answer 1

I Agree with the given statement.

Reason: The role of foreign trade in the economic development of a country can be explained with the help of the following points:

1. To earn foreign exchange: Foreign exchange is generated through international trade. The foreign currency earned can be utilised for various productive activities. Additionally, foreign trade aids in the expansion of production and markets for domestic goods and services.

2. To encourage investment: International trade offers producers the chance to sell goods and services both in the domestic market and abroad. This increases the production of various goods and services within the country, thereby stimulating investment.

3. To bring stability in price level: Foreign trade helps balance the demand and supply of goods, which contributes to stabilising price levels within the economy.

In conclusion, foreign trade plays a crucial role in the economic development of a country.