(a) Meaning of international trade: International trade is the exchange of goods and services among countries
(b) Advantages of international trade:
(i) Increase in the total world output of goods and services. According to the principles of comparative advantage, countries would specialize and so use their resources
more effectively,
(ii) Greater varieties: The people of one country can import and therefore enjoy what they cannot produce themselves.
(iii) A source of foreign exchange of earnings.
(iv) It leads to the exchange of skills and technology.
(v) It opens up the world market for local producers.
(vi) It generates employment or those engage in international trade
(vii) It leads to various forms of co-operation among countries
(viii) It is a source of revenue to the government.
(ix) Income to traders