Social Science: Globalisation and the Indian Economy - Foreign Trade and Integration of Markets


“Foreign trade integrates the markets in different countries”. Support the statement with arguments



Foreign trade has been integrating markets of different countries, as it allows the producers to cross international boundaries for cheap raw materials. The manufactured goods and services can now be sold in various markets of different countries. With many MNCs in the market, the consumer now has a wide range of products coming from different nations to choose from. Foreign trade therefore, interlinks various markets across the countries. For example, Cargill Foods India an American MNC refines a wide range of edible oils which are marketed locally and imported edible vegetable oils for the food industry. They serve customers with the brands such as Leonardo range of olive oils, Nature fresh, Gemini, Sweekar, Rath, Sunflower Vansapati etc. They are the single largest edible oil producer in India.

Concept: Foreign Trade and Integration of Markets
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2014-2015 (March) All India Set 2


What is meant by trade barrier?

"Advancement of international trade of a country is an index to its prosperity." Support the statement with suitable examples

Why did the Indian Government put barriers to foreign trade and foreign investments after independence? Analyse the reasons.

Which one of the following has been the major source of foreign exchange for IT industry?

(A) Bharat Heavy Electricals Limited 

(B) Oil India Limited

(C) Steel Authority of India Limited

(D) Business Process Outsourcing

How has liberalisation of trade and investment policies helped the globalisation process?

Distinguish between investment and foreign investment.

Answer the following question.
How has foreign trade been integrating markets of different countries? Explain with examples.

Analyze the contribution of foreign investment in globalization.

Entry of MNCs in a domestic market may prove harmful for:

Integration of markets means:

Cheaper imports, inadequate investment in infrastructure lead to:

Foreign trade results in connecting the markets or integration of markets:

Which of the following was the main channel connecting distant countries was:

Evaluate the impacts of opening foreign trade on the global economy by identifying the appropriate statements among the following options:

  1. The choice of goods in the markets increase.
  2. Producers from two countries closely compete against each other despite the distance between their locations.
  3. Foreign trade thus results in connecting the markets or integration of markets in different countries.
  4. The quality of the product is always good.

Which one of the following statements best describes the meaning of 'Globalisation'?

“Foreign trade results in connecting the markets in different countries.” Support the statement in the context of globalisation.


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