Trade means exchange of goods and services between two or more than two parties, there is no country in the world which can produce all that it needs. Every country, therefore, tries to produce those commodities in which it is specialised or has comparative advantage and then it exchanges its goods. The relative difference in factor endowments, technology, tastes etc. among the nations of the world has greatly widened the scope of the international trade. As this sector has proved itself as a driving force in the development, we can distinguish developing countries from developed ones on the basis of their trade volume.

Pakistan is a member of the World Trade Organisation, and has bilateral and multilateral trade agreements with many international organisations. Free Trade Agreements (FTAs) have proved to be one of the best ways to open up foreign markets for exporters. Despite complaints about trade imbalances, effects on domestic economies, currency upheavals, and loss of jobs, the reality of goods and services continually crossing borders will not go away. International trade will continue to be the engine that runs most nations.

HUMAYON RAFIQUE,

Lahore, June 24.