Editing Content :: Admin Scraper

Chapter

Content type

Position

Value

different countries practise specialisation and cultures which are valued the world division of labour in the production of over, e.g. China produces the finest commodities or provision of services. Each kind porcelains and brocades. Carpets of of specialisation can give rise to trade. Thus, Iran are famous while North African international trade is based on the principle of leather work and Indonesian batik comparative advantage, complimentarity and cloth are prized handicrafts. transferability of goods and services and in (b) Size of population: Densely principle, should be mutually beneficial to the populated countries have large trading partners. volume of internal trade but little In modern times, trade is the basis of the external trade because most of the world’s economic organisation and is related agricultural and industrial to the foreign policy of nations. With well- production is consumed in the local developed transportation and communication markets. Standard of living of the systems, no country is willing to forego the population determines the demand benefits derived from participation in for better quality imported products international trade. because with low standard of living only a few people can afford to buy Basis of International Trade costly imported goods. (i) Difference in national resources: The (iii) Stage of economic development: At world’s national resources are unevenly different stages of economic development of countries, the nature of items traded distributed because of differences in their undergo changes. In agriculturally physical make up i.e. geology, relief soil important countries, agro products are and climate. (a) Geological structure: It determines exchanged for manufactured goods the mineral resource base and whereas industrialised nations export machinery and finished products and topographical differences ensure import food grains and other raw diversity of crops and animals materials. raised. Lowlands have greater agricultural potential. Mountains (iv) Extent of foreign investment: Foreign attract tourists and promote investment can boost trade in developing countries which lack in capital required tourism. forthedevelopmentofmining,oildrilling, (b) Mineral resources: They are heavy engineering, lumbering and unevenly distributed the world over. The availability of mineral resources plantation agriculture. By developing provides the basis for industrial such capital intensive industries in developing countries, the industrial development. nations ensure import of food stuffs, (c) Climate:Itinfluencesthetypeofflora andfaunathatcansurviveinagiven minerals and create markets for their region. It also ensures diversity in finished products. This entire cycle steps the range of various products, e.g. up the volume of trade between nations. (v) Transport: In olden times, lack of wool production can take place in adequateandefficientmeansoftransport cold regions, bananas, rubber and cocoa can grow in tropical regions. restricted trade to local areas. Only high (ii) Population factors: The size, distribution value items, e.g. gems, silk and spices and diversity of people between countries were traded over long distances. With expansions of rail, ocean and air affect the type and volume of goods transport, better means of refrigeration traded. (a) Cultural factors: Distinctive forms of and preservation, trade has experienced art and craft develop in certain spatial expansion. 72 Fundamentals of Human Geography Reprint 2026-27