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Explain any five bases of international trade. |
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Answer» Difference in national resources National resources are unevenly distributed because of differences ingeology, relief, soil and climate Geology determines the mineral resource base and topographicaldifferences ensure diversity of crops and animals raised Climate influences the type of flora and fauna in a given region Population factors Distinctive forms of art and craft develop in certain cultures which are valued world over, Ex. porcelains from china, carpets of Iran Densely populated countries have large volume of internal trade but littleexternal trade Standard of living of the population determines the demand for betterquality imported products Stage of economic development Stage of economic development influence the nature of items traded In agriculturally important countries agro products are exchanged for manufactured goodsIndustrialized nations export machinery and finished products and importfood grains and other raw materials Extent of foreign investment It boost trade in developing countries which lack in capital They develop capital intensive industries like mining, oil drilling, plantation agriculture etcThe industrial nations ensure import of food stuffs and minerals andcreate markets for their finished products Transport Expansion of rail, ocean and air transport, better means of refrigerationand preservation trade has experienced spatial expansion |
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