Foreign Trade — Flashcards

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Domestic Trade: Commercial activity involving exchange of goods and services within a country's geographical boundaries. International Trade (Foreign Trade): Commercial activity involving exchange of …

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1. Difference in Factor Endowments: Countries have different natural resources and factors of production. 2. Cost of Production: Different costs due to varying availability of factors. 3. Technologica…

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Size of foreign trade means the total value and volume of merchandise imports and exports of a country. It increases when: 1. Value and volume of imports and exports rise in successive years, 2. Trade…

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Composition of trade refers to the types and categories of goods and services that a country imports and exports. It shows the nature of trade by indicating which items dominate imports and exports - …

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Direction of foreign trade means the trade relations of a nation with various countries and regions of the world. It shows which countries/regions a nation trades with most, indicating the geographica…

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Traditional exports (tea, coffee, jute) declined: Tea & coffee from 19.3% to 0.2%, Jute from 21% to 0.2%. Primary sector share fell from 44.2% (1960-61) to 12.3% (2014-15). Manufactured goods increase…

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Balance of Trade is the difference between the value of merchandise exports and merchandise imports of a country during a given period (usually one year). If exports > imports = Trade Surplus. If impo…

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Balance of Payments is a systematic account of all economic transactions between a country and the rest of the world during a specific period. It has two main accounts: 1. Current Account: Trade in go…