Indian Economy in The Global Context — Flashcards

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Economic relationship between countries means economic activities between the citizens of two or more countries. It includes buying and selling goods and services, doing jobs, business, and other exch…

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An open economy is a country that has economic relationship with other countries. It takes part in trade and other exchanges with the rest of the world.

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Export means selling goods and services to rest of the world. For example, India exports goods such as engineering goods, handicrafts, and readymade garments to other countries.

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Import means buying goods and services from rest of the world. India imports petroleum and lubricants, non-ferrous metals, capital goods, and fertilizer from foreign countries.

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International trade means trade between different countries. It includes exports and imports of goods and services across national borders.

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Trade is important because it helps in distribution of goods and services to people who want to pay for them, wherever they live. It also increases variety, encourages new production, and improves eff…

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International trade leads to specialization and efficient production of goods and services. A country can produce certain goods at lower cost and better quality, then sell them to other countries.

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Trade allows goods from different countries to reach one market. For example, foreign drinks and Indian goods can both be sold and consumed in different countries, so people get more choice.