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Explain five roles played by trade in an economy.

      

Explain five roles played by trade in an economy.

  

Answers


Joseph
1.Employment- trade leads to creation of jobs as different trading firms in need of labour employ many people.
2.Promotes peace- regional interactions in form of trade promotes unity among the people and thus political stability
3.Development of infrastructure- trade leads to development of roads to ease transportation of goods and services from one place to another like from producers to consumers
4.Economic disposition of surplus - some regions may be producing a product in surplus and trade enable then to economically dispose it by taking them to markets where they are demanded.
5.Trade enables consumers to easily get what they can not produce at the goods and services are availed in the markets
6.Source of government income - trade enables the government to earn income especially through taxation which they use for general development
Erwoti answered the question on June 24, 2018 at 10:46


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