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State with reason whether you agree or disagree with the following statement: Trade is an engine of growth for an economy. - Economics

MCQ
True or False

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

Trade is an engine of growth for an economy.

Options

  • Agree

  • Disagree

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Solution

I agree with the above statement.

Reason:

  1. Trade refers to buying and selling goods and services in exchange for money.
  2. Trade plays an important role in the process of economic development.
  3. In developed countries, it represents a significant share of the Gross Domestic Product (GDP).
  4. Foreign trade helps to earn foreign exchange for a country which can be put to productive use.
  5. Trade encourages investment in the economy.
  6. It leads to the division of labour and specialisation. It also leads to optimum allocation and utilisation of resources.
  7. It also brings stability in prices in the economy.
  8. Thus, trade is an engine of growth for an economy.
Concept: Foreign Trade of India
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APPEARS IN

Balbharati Economics 12th Standard HSC Maharashtra State Board
Chapter 10 Foreign Trade of India
Exercise | Q 5. (2) | Page 98
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