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Nilanjan Bhowmick AIR 3, CSIR NET (Earth Science)
Nidhi taparia
As per classical economists, it is the extent or size of market that limits division of labour as well as international trade. This means that trade can be limited or its scope can be cut short if there are not enough buyers or not enough buying capacity. For example today the world is reeling under a recession brought about by COVID-19. Incomes are low and so is demand. This has brought down the demand for exports and imports and trade stands affected.