Why is international trade considered the economic barometer for a country ?
The progress in international trade leads to economic prosperity. If the value of exports exceeds the value of imports, the country is considered to have made advancement in international trade. It is called favourable balance of trade. Developed countries come in this category. On the other hand, if the value of imports exceeds the value of exports, it is termed as unfavourable balance of trade. Thus, advancement of international trade is an index to its economic prosperity and considered the economic barometer for a country.
