For a long time, trade has been the main channel for connecting countries. In
history, you would have read about the trade routes connecting India and South Asia
to markets both in the East and West and the extensive trade that took place along
these routes. You would also remember that it was trading interests which attracted
various trading companies such as East India Company to India. What is the basic
function of foreign trade?
To put it simply, foreign trade creates an opportunity for the producers to reach
beyond the domestic markets.Similarly, for the buyers, trade expands the choice of
goods beyond what is domestically produced. Foreign trade, thus, results in
connecting the markets or integration of markets in different countries
