what is the meaning of foreign trade and what is its role in the indian economy?

Question

i would be greatly obliged if sumone can tell me exactly, from an economist's view, what the definition and meaning of foreign trade is and especially its role in the indian economy. i also need statistical data regarding the structure of india's foreign trade , the composition, main items of export and import and the gradual trend over the years as the economy has progressed. i would be thankful if a good link/site/url is also given.

Answer 1

is this an assignment?

Refer to the second year BA economics ext by Mithani on International Trade and FInance....

it's got statistical tables and graphs too

Answer 2

Foreign Trade Definition

Answer 3

Excellent foreign policy. We are now moving towards being a recognized world power unlike during the Vajpayee period when India was isolated and we suffered humiliations like the Kandahar episode, Gujarat rioits, Kargil war, Tehelka sting operation, India Shining flop and what not. Dr. MMS is the first foreign head to be invited to Washington in Obama's Presidency, a post since time immemorial was given only to European leaders. We have effectively roped USA as our partner in this unipolar world, with Russia and Israel still being our strong allies. China has been put to place and the anti-national pseudo-patriots sponsored by their spy aganecies have also been given a kick in the 455. I love the LC report.

Answer 4

Forein trade consists of export and import of goods and services from a country. the GDP of a country is the domestic equivalent of foreign trade. In the case of India, historically, textiles contributed a lot to the export and of late that place is taken by IT/BPO in the form of services. Indian imports mainly consist of manufactured goods.

Answer 5

Hello

The definition of foreign trade is the export of all goods and services to foreign countries and the import of all goods and services to the home country. You will probably find a lot of data on the website of the Indian Government, especially the foreign affairs and economy departments.

To understand the role of foreign trade in the Indian economy, you have to understand the importance of foreign trade for any country. I'll explain this with a simple example:

Imagine that there are only two countries in the world, India and Denmark. Both countries have 1 000 citizens. These citizens eat only bananas and drink only milk (let's say they only eat banana-milkshakes). Each country needs 50 000 bananas and 50 000 litres of milk to feed it's population.

In India, the weather is good, the sun shines a lot so bananas grow easily. Therefore, one Indian can produce 100 bananas per year. But India is also a dry country, so the cows in India don't produce much milk. Therefore one Indian can only produce 50 liters of milk per year.

In Denmark, the weather isn't sunny, so bananas don't grow easily. Therefore, one Dane can only produce 50 bananas per year. On the other hand is Denmark a perfect place for cows, because it is a very green country. Therefore, one Dane can produce 100 litres of milk per year.

Let's suppose that their is no foreign trade in our two-country-world. Denmark will produce 50 000 litres of milk and will use 500 inhabitants to do this. The other 500 Danes will be used to produce bananas, resulting in a production of 25 000 bananas (500 workers x 50 bananas per worker). So Denmark will come 25 000 bananas short to feed it's population.

India will produce 50 000 bananas (using 500 workers) and 25 000 litres of milk (using the other 500 workers), and also India will not be able to feed it's population.

So without foreign trade, both countries will not be able to produce enough food for the population.

No suppose that there is foreign trade between India and Denmark. Now both countries can produce the goods that they are best in, bananas for India and milk for Denmark.

The 1000 workers in India will be able to produce 100 000 bananas. They only need 50 000, so the other 50 000 will be exported to Denmark. The 1000 workers in Denmark will be able to produce 100 000 litres of milk. They only need 50 000 litres, so the other 50 000 litres will be exported to India. As a result of this foreign trade, both countries will have enough food to feed their population.

This example makes two things clear. One: foreign trade is for the benefit of all countries. Two: when there is foreign trade, you will specialize in the production of those goods in which you have an advantage to produce them.

Now let's focus on India. The role of foreign trade on the Indian economy is now easy to determine:

First of all, foreign trade has made India richer. Products which are difficult to produce for India (engines, ...) can be imported, which is good for the Indian economy.

Second of all, and this is without doubt the biggest influence on the Indian economy, the rise of foreign trade has forced India to specialise in the production of a few goods. These are mainly ores (the Indian mines), foodproducts and cheap products that are easily built using cheap labour.

So India has been one of those countries which competes with other economies by producing labourintensive products. This has had a great influence on Indian economy, because it implies a partial shift from agriculture to industrial production.

Answer 6

Foreign trade is process of conducting trade between the various nationa of the world. It is also called as global trade https://goo.gl/buoeE3

Answer 7

I don't know but I'm sure there must be one.