Introduction to International Trade - 1356 Words

Introduction to International trade International trade is the exchange of capital, goods, and services across international borders or territories or in other words is the process of import and export. international trade has been present throughout much of history its economic, social, and political importance has been on the rise in recent centuries. Industrialization, advanced in technology transportation, globalization, multinational corporations, and outsourcing are all having a major impact on the international trade system. While In most countries, such trade represents a significant share of gross domestic product (GDP). Increasing international trade is crucial to the continuance of globalization this is because without†¦show more content†¦Advantages and disadvantages of international trade The advantage of international trade is greater variety of goods available for consumption and international trade brings in different varieties of a particular product from different destinations. This gives consumers wider arrays of choices which is will not only improve their quality of life but as a whole it will help to the country grow. Better utilization and efficient allocation of resources since countries tend to produce goods in which they have a comparative advantage and its lead to when the countries produce through comparative advantage, wasteful duplication of resources is prevented and helps save the environment from harmful gases being leaked into the atmosphere and also provide countries with a better marketing power. Promotes efficiency in production as countries will try to adopt better methods of production to keep costs down in order to remain competitive. For those countries that can produce a product at the lowest possible cost, will be able to gain a larger sh are in the market. Therefore an incentive to produce efficiently arises. This will help standards of the product to increase and consumers will have a good quality product to consume. As the market for the countries’ goods widens through trade more employment couldShow MoreRelatedInternational Trade : Comparative And Competitive Advantage1512 Words   |  7 Pages International trade theories are simply theories that explain how imports and exports work between different countries. Hence the name international trade. In this paper I will be reviewing different theories of international trade, explain the difference between comparative and competitive advantages, and answering three important questions. What the underlying economic rationale for international business activity is, why trade takes place, and the gains from trade and investment. I will firstRead MoreChinas Entry into the World Trade Organization688 Words   |  3 PagesIntroduction World Trade Organization ( WTO Eng . World Trade Organization (WTO) - an international organization founded January 1, 1995 for the purpose of international trade liberalization and regulation of trade and political relations between the Member States. WTO established under the General Agreement on Tariffs and Trade (GATT) .WTO is responsible for the introduction of new parts as well as enforces the members of the organization of all agreements signed by most countries and ratified byRead MoreEconomic Integration and Global Markets to Uk Business Organizations1735 Words   |  7 PagesTable of contents Introduction-----------------------------------------------------2 Main body---------------------------------------------------------3 The definition of International trade------------------------3 The reason of International trade----------------------------3 The importance of international trade---------------------3 Economic integration and global markets to UK business organizations-----------------------------------------4 The impact of two policies of the European Union onRead MoreThe Role of International Trade in Economic Growth of Countries699 Words   |  3 PagesINTRODUCTION International trade plays a significant role in the economic growth of countries. It gives a country an opportunity to specialize in products and services that can be produced at a low cost compared to other nations, that is a comparative advantage. However gains from international trade is uneven between countries due to several country specific factors. These factors are complex and multidimensional; and include GDP, distance between countries, culture, population, import and exportRead MoreArticle: Euro Effects1717 Words   |  7 Pagesï » ¿Euro Effects Introduction European Monetary System (EMU) is the arrangement by following which most EU (European Union) nations have connected their currencies to put a stop to great changeability and vacillations relative to one another. It was in 1979 that this system was organized in order to soothe and stabilize the foreign exchange and respond to price increases among member nations. However, sporadic changes not only elevated the values of strong currencies but at the same time, loweredRead MoreInternational Trade Agreements And How Governmental Influences Benefited Trade1231 Words   |  5 Pagesdiscuss the benefits United States (U.S) had by engaging in international trade agreements and how governmental influences benefitted trade. To regulate international trade between nations, international trade agreements exist. These agreements involve regulating imports, exports and international trade of some specialty goods. The United States have been involved in many international trade agreements includ ing free trade agreements. Free trade Agreements (FTA) helps the United States to open up foreignRead MoreMarket Forces Shape Organisational Responses Using A Range Of Examples?1086 Words   |  5 Pagescustomers to put an organisation under pressure, which also affects the customer s sensitivity to price changes. Firms can take measures to reduce buyer power, such as implementing a loyalty program. For example, the introduction of Tesco clubs card by Tesco retailer and also the introduction of a discount card. Threat of Substitution: The existence of products outside of the territory of the common product boundaries increases the tendency of customers to switch to alternatives. For example, bottledRead MoreThe Pros and Cons of Globalization Essay1680 Words   |  7 PagesWHAT IS GLOBALIZTION? First off, we will search and explore some definitions of the term globalization. ?Globalization is the process of denationalization of markets, politics, and legal systems, i.e., the rise of the so-called global economy? (Introduction to Globalization, 2004). Another article states, ?Globalization is an inevitable phenomenon in human history that?s been bringing the world closer through the exchange of goods and products, information, knowledge and culture. But over the lastRead MoreThe Main Goals Of Free Trade Agreements1186 Words   |  5 Pages One of the main goals of free trade agreements is globalization. Globalization, or global free trade, is the creation of trading connections between countries throughout the world (Globalization). Globalization stresses free trade. Free trade is when tariffs are reduced or eliminated on exports or imports. Tariff tax percentages added to US imported goods have dropped dramatically from about 60% in the 1930s, to lower than 10% in 2005 (In ternational). With less money taxed on products, corporationsRead MoreStudy Plan for Masters Degree in International Trade642 Words   |  3 PagesStudy Plan for Masters Degree in International Trade: Abstract. The Master Program of International Trade at The department of Economics of shanghai University is one of the leading ones of its kind around. The program has been created to provide students with the best possible skills and capacity to find employment in the international sector or to pursue international trade policy research. In response to the changing environment and development of the expertise of the faculty, The Department