Stage of economic development and trade
Topic: International Trade: Patterns, Ports and the WTO · NCERT: Class 12, Ch 8 "International Trade"
Meaning
Stage of economic development and trade is a basis of international trade. What a country trades depends on how developed it is. Mainly farming countries sell farm products and buy manufactured goods. Industrial nations sell machinery and finished goods and buy food grains and raw materials. So the stage of development decides both what a country sells and what it buys.
Example
Germany is an industrial nation. It exports machinery and cars and imports food and raw materials. A mainly farming country sells crops abroad and uses the money to buy machines and other manufactures.
Don't confuse with
- Colonial pattern of trade: this was a historical case of this basis. Industrial nations bought raw materials from colonies and sold manufactures back to them. The stage of economic development is the general idea behind it.
Related concepts
- Basis of international trade
- Difference in national resources
- Population factors in trade
- Foreign investment and trade