Question

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

• A. Differences in national resources
• B. Stage of economic development
• C. Level of transport development
• D. Social diversity in the country

Hint:

International trade is based on differences in resources, technology and economic development.
Transport and communication play an important role in promoting trade.
Countries trade because no nation is completely self-sufficient.
Social diversity is not considered a basis of international trade.

Answer 1

The Correct Option is D

Concept:
• International trade refers to the exchange of goods and services between different countries.
• No country is completely self-sufficient in the production of all goods and services.
• International trade develops because countries differ in their natural resources, technology, economic development and transport facilities.
• Efficient transport and communication networks reduce the cost of moving goods, thereby promoting international trade.
• Social diversity may influence culture and lifestyle within a country, but it is not considered a basis for international trade.

Step 1: Understand the bases of international trade
Countries participate in international trade because they possess different resources, production capacities and technological capabilities. Trade enables countries to specialise in producing goods for which they have a comparative advantage.

Step 2: Analyse each option
Option (A): Differences in national resources
• Countries differ in climate, minerals, land, forests, water resources and labour availability.
• These differences create the need for international trade. Therefore, \[ \boxed{\text{Option (A) is a basis of international trade.}} \] Option (B): Stage of economic development
• Countries at different stages of development produce different goods and services.
• This encourages international trade between developed and developing nations. Therefore, \[ \boxed{\text{Option (B) is a basis of international trade.}} \] Option (C): Level of transport development
• Well-developed transport systems reduce transportation costs and facilitate the movement of goods.
• Hence, transport development is an important basis for international trade. Therefore, \[ \boxed{\text{Option (C) is a basis of international trade.}} \] Option (D): Social diversity in the country
• Social diversity refers to differences in language, religion, culture and traditions within a country.
• Although it influences society, it does not form the basis of international trade. Therefore, \[ \boxed{\text{Option (D) is Not a basis of international trade.}} \]

Step 3: Choose the correct answer
Among the given options, only social diversity is unrelated to the basic factors responsible for international trade. Therefore, \[ \boxed{\text{Correct Answer = (D) Social diversity in the country}} \]