Using illustration Explain the interrelationship between national income and international trade of a country ?

National income and international trade are closely interconnected and have a significant impact on each other.

National income refers to the total value of goods and services produced within a country's borders in a given period of time. It is a measure of the economic health and prosperity of a country. International trade, on the other hand, refers to the exchange of goods and services between countries.

When a country engages in international trade, it can increase its national income by exporting goods and services to other countries. This can lead to an increase in production, employment, and income within the country. Additionally, international trade can also lead to the importation of goods and services that are not produced domestically, which can further stimulate economic growth and increase national income.

Conversely, national income can also impact international trade. A higher national income can lead to increased demand for goods and services, both domestically and internationally. This can result in increased exports and imports, as well as a higher level of economic activity overall.

Overall, the interrelationship between national income and international trade is complex and dynamic. A country's national income can be influenced by its level of international trade, and vice versa. By effectively managing both national income and international trade, a country can promote economic growth and prosperity.