Foreign trade provides opportunities for both producers and buyers to reach beyond the domestic market of their own countries. Good travel from one country to another. For the buyers, import of goods produced in another country provides opportunity to extent their choice of goods beyond what is domestically produced. Competition among producers of various countries prevail as they can sell their products not only in the domestic market but also compete in the market of other countries.
Thus, foreign trade has been the main channel connecting countries. For example-Silk route connects Indian and South Asia to the markets in both the East and West.