Question:

Which one of the following is not the base of 'international trade'?

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Remember: International trade exists primarily because of unequal distribution of economic resources, not internal societal structures.
  • Differences in national resources
  • Stage of economic development
  • Level of transport development
  • Social diversity in the country
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The Correct Option is D

Solution and Explanation

Step 1: Concept
International trade is driven by various geographic, economic, and logistical disparities between nations that create mutual demand.

Step 2: Meaning

The "bases" of international trade are the fundamental reasons why countries need to exchange goods and services across borders.

Step 3: Analysis


• Differences in national resources dictate exactly what surplus a country can export and what deficits it must import.
• The stage of economic development determines the nature of items traded (e.g., developing nations exporting raw materials vs. developed nations exporting electronics).
• The level of transport development facilitates the physical movement and scale of trade.
• While "population factors" like size and cultural crafts can influence trade, general "social diversity" within a country is not a primary macroeconomic driver of global trade.

Step 4: Conclusion

Therefore, social diversity is not considered a foundational base for international trade. Final Answer: (D)
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