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Foreign Trade Policy

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  • 1. 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