"Advancement of international trade of a country is an index of its economic prosperity? Explain.

This statement is true because (i) as the resources are limited no country can survive without International trade. (ii) goods or resources possessed by one country are required by other and vice-versa. These differences create conditions for international trade. (iii) foreign trade has helped India to improve its productivity of manufactured goods. International trade contributes to India’s economic growth, raising income level of people. (iv) in the recent years, exchange of commodities and goods have been superseded by the exchange of information and knowledge. (v) India has emerged as a software giant at the international level and it is earning large foreign exchange through the export of information technology. Thus, it can be concluded that advancement of international trade of a country is an index of its economic property. read less

Advancement of International trade of a country shows the economic prosperity of a country in following ways: 1) Any foreign country wants to be in a trade with any particular country if it is assured of its political stabilty, which consequently results in better profit prospects in the long term. 2) In this age of globalizaton where you have many vendor countries for any product, a country engages in trade only with that country which provides quality with competitive price. Thus it shows about the quality deliverence of a country. 3) More international trade means that the human and resources of the country are being optimally organized and it gives better employment oppurtunities to the people, which in turn leads to better economic prosperity within a country. More a country is having trading partners, better will be its foreign reserves, which in turn helps in having better trade deficits i.e difference between exports and imports. Considering all these points we can explain the question. read less