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Q.(a) “International trade is mutually beneficial to nations.” Support the statement with suitable arguments.

(OR)
(b) “Global sea ports are the gateways of international trade.” Support the statement with suitable arguments.
CBSECBSE Class XII Board 2026Subjective· 3mImportance★★★★★
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Part (a): International trade is mutually beneficial because it lets nations specialise (comparative advantage), access what they lack, enjoy lower prices and more choice, and build peaceful interdependence.

Part (b): Global sea ports are trade gateways because the vast majority of world trade moves by sea, and ports are the nodes where cargo transfers between ships and inland transport.

Part (a)

The statement "International trade is mutually beneficial to nations" rests on one of the oldest and most tested ideas in economics, and it holds for countries of every size and stage of development. The core reason is that no nation is self-sufficient: countries differ in natural resources, climate, labour skills, capital and technology.

Specialisation and comparative advantage. Trade allows each country to concentrate on what it can produce most efficiently and exchange the surplus for what others produce better or more cheaply. A tropical country can grow tea and spices that a temperate country cannot; the temperate country may produce timber or machinery cheaply. By specialising and trading, both are better off — the principle of comparative advantage, explained long ago by David Ricardo.

Access to resources and technology. Trade brings countries goods, minerals, energy and knowledge they lack. India, for example, imports crude oil, machinery and advanced equipment it cannot produce in sufficient quantity, while exporting textiles, software services and agricultural goods. Importing machinery or medicines also transfers technology and skills.

Lower costs and more choice. Producing for a larger, global market allows economies of scale, lowering the cost per unit, while competition from imports keeps domestic producers efficient and prices low. Consumers gain wider variety and better quality. …

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