How does foreign trade lead to integration of markets in different countries?

Trade and investment was liberalised to increase international competitiveness of industrial production, foreign investments and technology. Foreign trade has been integrating markets of different countries, as it allows the producers to cross international boundaries for cheap raw materials. The manufactured goods and services can now be sold in various markets of different countries. With many multinational national companies in the market, the consumer now has a wide range of products coming from different nations to choose from.

Hence, it interlinks various markets across the countries. For example, Volkswagen, a German automobile company, is the biggest German automaker and second largest automaker in the world. It came to India in 2007 and had recorded sales of 32,627 vehicles in the year 2010.