Name: Liberalisation Entails Removing Trade Barriers
Uploaded: 2019-07-19
Duration: 4 min 53 s
Description: Liberalisation is an economic practice that allows countries to trade freely. Watch this video to see why this idea was so appealing to the Indian government.

Question

"Foreign trade has been the main channel of connecting countries for a long time." Analyse the statement.

Accepted Answer

The remark "Foreign trade has been the main channel of connecting countries for a long time" underscores the historical and ongoing relevance of international trade as a crucial mechanism that promotes links, interactions, and interdependence between countries. This claim can be analysed in a number of ways:

Economic Integration: Cross-border trade entails the interchange of products, services, and capital. Countries can access resources, goods, and markets that they might not have access to domestically thanks to economic integration.

Growth: Cooperation and specialisation in the economy are encouraged, which boosts productivity and prosperity.

Cultural Exchange: Trade enables cross-border movement of people, ideas, and cultural artefacts. Cross-border trade of commodities and services introduces cultural influences that encourage the exchange of customs, languages, works of art, and practises.

Technological Diffusion: Technologies spread over the world through trade. Trading partners may provide countries with cutting-edge technology, equipment, and information, fostering innovation and advancement.

Interdependence and Peace: To ensure the free flow of goods and services, nations with close economic links have a stake in upholding peace. Conflict can be averted through the interdependence of economies.

"Foreign trade has been the main channel of connecting countries for a long time." Analyse the statement.

Technological Diffusion: Technologies spread over the world through trade. Trading partners may provide countries with cutting-edge technology, equipment, and information, fostering innovation and advancement.
Interdependence and Peace: To ensure the free flow of goods and services, nations with close economic links have a stake in upholding peace. Conflict can be averted through the interdependence of economies.

Important Questions on Globalisation and the Indian Economy

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