True or False
State with reason whether you agree or disagree with the following statement:
Trade is an engine of growth for an economy.
I agree with the above statement.
- Trade refers to buying and selling goods and services in exchange for money.
- Trade plays an important role in the process of economic development.
- In developed countries, it represents a significant share of the Gross Domestic Product (GDP).
- Foreign trade helps to earn foreign exchange for a country which can be put to productive use.
- Trade encourages investment in the economy.
- It leads to the division of labour and specialisation. It also leads to optimum allocation and utilisation of resources.
- It also brings stability in prices in the economy.
- Thus, trade is an engine of growth for an economy.
Concept: Foreign Trade of India
Is there an error in this question or solution?