Answer:
Trade is the base of world economy. The exchange of surplus goods between different countries is called International trade. It is the index of economic development of the country. The countries which export the commodities earn foreign exchange. Developed countries are major trading countries. It also helps to raise the standards of living of the people of developing countries. Some densely populated countries have to import of raw material to meet their demands for their economic and industrial development. Such countries are Japan, Sri Lanka and other countries.
The actual tonnage of goods traded makes up the volume. However, services traded cannot be measured in tonnage is considered to be the volume of trade. The total volume decides.
Trade of primary products was dominant in the beginning of the last century. Later manufactured goods gained prominence and currently, though the manufacturing sector which includes travels, transportation and other commercial services have been showing an upward trend.
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