International Trade:

• International trade is defined as the exchange of goods

and services between two or more countries.
• It is also considered as economic barometer because
advancement of international trade of a country leads to
economic prosperity. Income earned from international
trade constitutes a major part in the net national
income. Large international trade leads to revival of
domestic economy.

Balance of trade:

• The difference between export and import is known as

balance of trade.
• If the value of exports is more than the value of imports,
it is called favorable balance of trade. And if the value of
imports is greater than the value of exports it is known
as unfavorable balance of trade.
• Favorable balance of trade is regarded good for the
economic development where as unfavorable balance of
trade is seen harmful for the domestic economy.

Importance of tourism as a trade:

• Tourism in India earns huge Foreign exchange,

• Over 2.6 million foreign tourists visit India every year.
• More than 15 million people are directly engaged in the
tourism industry.
• Tourism also promotes national integration,
• It provides support to local handicrafts and cultural
pursuits.
• It also helps in the development of international
understanding about our culture and heritage.
• Foreign tourists visit India for heritage tourism, eco
tourism, adventure tourism, cultural tourism, medical
tourism and business tourism.
• Rajasthan, Goa, Jammu and Kashmir and temple towns
of south India are important destinations of foreign
tourists in India.
• There is vast potential of tourism development in the
north-eastern states and the interior parts of Himalayas,
but due to strategic reasons these have not been
encouraged so far