UNIT I
FOREIGN TRADE AND POLICY
OBJECTIVES
To give broader understanding of the foreign trade and it’s policy. This
unit given students an understanding of the aspects that how the various theories
explain the development of foreign trade between the nations.
The main objectives of this unit are:
• To analysis similarities and differences between internal and
international trade.
• To provide an overview of various theories in foreign trade.
• To evaluate the terms of trade between the nations.
• To analysis the concept of Balance of Payment and Adjustment
Mechanism in Balance of Payment.
STRUCTURE
1. Introduction
1.1 Meaning of International Trade
1.2 Similarities and Differences between Internal and International
Trade
1.3 Gains from International Trade
1.4 Adam Sm