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Asked by Sujeet Last Modified
Answer 
Bases of International trade:
(i) Difference in national resources: The world's national resources are unevenly distributed because of differences in their physical make up i.e. geology, relief soul and climate.
(ii) Stage of economic development: At different stages of economic development of countries, the nature of items traded undergo changes.
(iii) Extent of foreign investment: Foreign investment can boost trade in developing countries which lack in capital required for the development of mining, oil drilling, heavy engineering and plantation agriculture.
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International trade between one country and another depends on
1. The demand pull by the using country for a particular type of goods produced in another countryp like diamond, iridium etc
2. Stage of economic development of the importing country which is not yet at a stage technologically and industrially to manufacture a particular type of goods-xerox machines, iPads etc
3. Availability of transport routes by land, sea or air, for no matter how strong is the demand or how under-developed the importing country may be trade will not take place.
read less
International trade between one country and another depends on
1. The demand pull by the using country for a particular type of goods produced in another countryp like diamond, iridium etc
2. Stage of economic development of the importing country which is not yet at a stage technologically and industrially to manufacture a particular type of goods-xerox machines, iPads etc
3. Availability of transport routes by land, sea or air, for no matter how strong is the demand or how under-developed the importing country may be trade will not take place.
read less
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