AI-generated practice question — model-generated for extra practice, not a previous-year CBSE board question.
(B) Integration of markets across countries
Foreign trade connects markets of different countries, causing goods to flow freely, prices to equalise, and producers to compete globally, thus integrating markets across countries.
Source: Foreign Trade and Integration of Markets, Chapter 4
The passage explicitly states: "Foreign trade thus results in connecting the markets or integration of markets in different countries." Examiners expect you to identify option (B) directly. The other options contradict the passage — foreign trade increases variety (not reduces it), does not permanently eliminate domestic producers, and liberalisation reduces trade barriers, not increases them.