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"ADVANCEMENT OF INTERNATIONAL TRADE OF A COUNTRY IS AN INDEX TO ITS EC...
(i) As the resources are space-bound, no country can survive without international trade.
(ii) Foreign trade has helped India to improve its productivity of manufactured goods. International trade contributes to India’s economic growth, rising income level of people.
(iii) Goods or resources possessed by one country are required by other and vice-versa. These differences create conditions for International trade.
(iv) In the recent years, exchange of commodities and goods have been superseded by the exchange of information and knowledge.
(v) India has emerged as a software giant at the International level and it. is earning a large amount of foreign exchange through the export of Information Technology.
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"ADVANCEMENT OF INTERNATIONAL TRADE OF A COUNTRY IS AN INDEX TO ITS EC...
Introduction:
The advancement of international trade is often considered as a significant indicator of a country's economic prosperity. International trade refers to the exchange of goods, services, and capital across borders between different countries. It plays a crucial role in determining the economic growth and development of a nation. This response elaborates on how the advancement of international trade can be seen as an index to a country's economic prosperity.

Enhanced Economic Growth:
- International trade opens up new markets and opportunities for businesses to expand their customer base beyond domestic borders.
- By participating in international trade, countries can tap into a larger global market, leading to increased demand for their goods and services.
- This increased demand stimulates production, leading to higher economic growth rates.
- Furthermore, international trade allows countries to specialize in the production of goods and services where they have a comparative advantage, leading to increased efficiency and productivity.

Job Creation and Increased Employment:
- Advancement in international trade leads to the creation of new job opportunities.
- Export-oriented industries require a skilled workforce to meet the demands of global markets.
- Increased employment levels contribute to higher income levels and improved living standards for the population.
- As international trade expands, it also drives the development of supporting industries and services, further generating employment opportunities.

Foreign Exchange Earnings:
- International trade enables a country to earn foreign exchange through the export of goods and services.
- This foreign exchange can be used to import essential goods, advanced technology, and machinery, which are crucial for economic development.
- A higher level of foreign exchange reserves strengthens a country's ability to meet its external obligations and stabilize its currency.

Technological Advancements:
- International trade facilitates the transfer of technology between countries.
- Developed countries often export advanced technology and machinery to less developed countries, enabling them to enhance their production capabilities.
- Access to new technologies can lead to increased productivity, efficiency, and competitiveness in domestic industries.

Improved Standard of Living:
- International trade allows countries to access a wider variety of goods and services at competitive prices.
- This enhances consumer welfare by providing more choices and better quality products.
- Additionally, increased trade can lead to a reduction in prices due to economies of scale and increased competition.
- The availability of affordable goods and services improves the standard of living for the population.

Conclusion:
The advancement of international trade is indeed an index to a country's economic prosperity. It enhances economic growth, creates employment opportunities, boosts foreign exchange earnings, facilitates technological advancements, and improves the standard of living. Countries that actively participate in international trade tend to experience higher levels of economic development and prosperity.
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Read the source given below and answer the questions that follows:The exchange of goods among people, states and countries is referred to as trade. The market is the place where such exchanges take place. Trade between two countries is called international trade. It may take place through sea, air or land routes. While local trade is carried in cities, towns and villages, state level trade is carried between two or more states. Advancement of international trade of a country is an index to its economic prosperity. It is, therefore, considered the economic barometer for a country. As the resources are space bound, no country can survive without international trade. Export and import are the components of trade. The balance of trade of a country is the difference between its export and import. When the value of exports exceeds the value of imports, it is called a favourable balance of trade. On the contrary, if the value of imports exceeds the value of exports, it is termed as an unfavourable balance of trade. India has trade relations with all the major trading blocks and all geographical regions of the world. Among the world, the commodities exported from India to other countries include gems and jewellery, chemicals and related products, agriculture and allied products, etc. The commodities imported to India include petroleum crude and products, gems and jewellery, chemicals and related products, base metals, electronic items, machinery, agriculture and allied products. India has emerged as a software giant at the international level and it is earning large foreign exchange through the export of information technology.Answer the following MCQs by choosing the most appropriate option.Q. Advancement of international trade of a country is an to its economic prosperity.

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"ADVANCEMENT OF INTERNATIONAL TRADE OF A COUNTRY IS AN INDEX TO ITS ECONOMIC PROSPERITY "?ELABORATE Related: Lifelines of National Economy - Chapter 7 Geography NCERT Class 10?
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