How does foreign trade lead to integration of markets across countries? Explain with an example other than those given here.

Here’s a concise breakdown in points on how foreign trade leads to the integration of markets across countries:

– Supply Chain Connections: Foreign trade involves countries collaborating to produce goods; for instance, a T-shirt might have its cotton from one country, manufacturing from another, and design from a different nation.

– Specialization and Collaboration: Each country specializes in what it does best, contributing to the production process. This specialization allows for efficient production and diverse expertise in creating a final product.

– Global Market Expansion: Products made through international collaboration are exported and sold globally, expanding market reach and ensuring availability in various countries.

– Consumer Choices and Competition: Different brands and products from various countries compete in the global market, offering consumers a wide range of choices in terms of styles, designs, and prices.

– Economic Interdependence: Foreign trade creates economic interdependence, where disruptions in one country’s production can impact product availability globally, highlighting the interconnected nature of global markets.