International Trade

Better Essays
Seminar 1 International Trade
What Is International Trade?
February 25 2012| http://www.investopedia.com/articles/03/112503.asp
If you walk into a supermarket and are able to buy South American bananas, Brazilian coffee and a bottle of South African wine, you are experiencing the effects of international trade.

International trade allows us to expand our markets for both goods and services that otherwise may not have been available to us. It is the reason why you can pick between a Japanese, German or American car. As a result of international trade, the market contains greater competition and therefore more competitive prices, which brings a cheaper product home to the consumer.

What Is International Trade?
International trade is the exchange of goods and services between countries. This type of trade gives rise to a world economy, in which prices, or supply and demand, affect and are affected by global events. Political change in Asia, for example, could result in an increase in the cost of labour, thereby increasing the manufacturing costs for an American sneaker company based in Malaysia, which would then result in an increase in the price that you have to pay to buy the tennis shoes at your local mall. A decrease in the cost of labour, on the other hand, would result in you having to pay less for your new shoes.

Trading globally gives consumers and countries the opportunity to be exposed to goods and services not available in their own countries. Almost every kind of product can be found on the international market: food, clothes, spare parts, oil, jewellery, wine, stocks, currencies and water. Services are also traded: tourism, banking, consulting and transportation. A product that is sold to the global market is an export, and a product that is bought from the global market is an import. Imports and exports are accounted for in a country's current account in the balance of payments.

Increased Efficiency of Trading Globally
Global trade

You May Also Find These Documents Helpful

  • Good Essays

    International Trade

    • 875 Words
    • 4 Pages

    International Trade What is International Trade? International trade is defined as trade between two or more partners from different countries in the exchange of goods and services. In order to understand International trade, we need to first know and understand what trade is, which is the buying and selling of products between different countries. International Trade simply globalization the world and enable countries to obtain products and services from other countries effortlessly and expediently…

    • 875 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    international trade

    • 2930 Words
    • 9 Pages

    The relationship between openness to international trade and development Introduction: Openness to international trade is the popular choice among different countries for their own development, especially after the establishment of the World Trade Organization (WTO) in 1995, globalisation is a trend for different districts, and a country is difficult to develop its economy in a closed circumstance. According to Razmi and Refaei (2013, p377), International trades will benefit the people and institutions…

    • 2930 Words
    • 9 Pages
    Powerful Essays
  • Powerful Essays

    International Trade

    • 1924 Words
    • 7 Pages

    Module Title International Trade and Development Issues Module Code Econ 3527 Essay Title Examine the consequences of economic growth of an economy on its international trade composition. Discuss how the conclusions may vary IF the economy is either a “small” country or a “large” country. Student Number P09286445 F.A.O Parmjit Kaur Word Count 2016 The paper will begin by describing economic growth and look into the effects of the growth. The author will then attempt…

    • 1924 Words
    • 7 Pages
    Powerful Essays
  • Good Essays

    International Trade

    • 611 Words
    • 3 Pages

    Introduction International trade is the purchase, sale or exchange of goods and services across national borders (Wild, Wild & Han 2006). This type of trade has rose to a global economy, in which prices, or demand and supply, influence and are affected by world events. The opportunity to be exposed to both goods and services not available in their own countries are given by trading globally. Let's take a simple example. If you go into a supermarket and are able to buy Brazilian coffee…

    • 611 Words
    • 3 Pages
    Good Essays
  • Good Essays

    International Trade

    • 411 Words
    • 2 Pages

    International trade is the trade carried out by residents of a country with a population of other countries on the basis of mutual agreement. The society consists of individuals with a bias toward individuals, individuals with Government or one Government with intergovernmental as well other Government that is out of the country. Keep in the know in some countries that use a lot of international trade to increase GDP. Every country has its own policies to protect their domestic economies from the…

    • 411 Words
    • 2 Pages
    Good Essays
  • Good Essays

    International trade

    • 800 Words
    • 4 Pages

    International trade is the exchange of goods and services between countries. For example, you can find Australia’s beef, Brazilian coffee, Japanese wine in a supermarket. Nearly everything can be found on the international market. A product sells to an international market is called export while a purchased product from international market is called import. There are reasons that countries involve in international trade. For instance, some countries lack of raw materials like timber, rubber, oil…

    • 800 Words
    • 4 Pages
    Good Essays
  • Better Essays

    International Trade

    • 2601 Words
    • 11 Pages

    Introduction International trade theory provides explanations of the benefit for country to engage in international trade, even for products it can produce for itself. As time goes by, there are mainly 7 types of theory, namely, mercantilism, absolute advantage, comparative advantage, Heckscher-ohlin theory, product life-cycle theory, new trade theory, Porter’s diamond national competitive advantage theory. Although some of the theories hold different view of patterns of international trade and vary…

    • 2601 Words
    • 11 Pages
    Better Essays
  • Good Essays

    International Trade

    • 839 Words
    • 4 Pages

    on international trade and foreign exchange rates and how those affect the GDP, domestic markets, and students. I will also outline some of the benefits on goods and services that are imported from other countries and how those contribute to our economy in the United States. International Trade to GDP In order to understand international trade it is important to recognize what the effects of international trade have on the GDP, domestic markets and university students. International trade is…

    • 839 Words
    • 4 Pages
    Good Essays
  • Good Essays

    International Trade

    • 966 Words
    • 4 Pages

    What is International Trade? Nowadays, the modern economy has a dramatically increase, and also the economic globalization has been formed. Trade, especially international trade has become the most important role in the world economy. Trade is the voluntary exchange of goods, services, assets or money between one person or organization and another. Through the trade, both parties believe they will gain the benefit from the exchange. International trade is trade between residents of two countries…

    • 966 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    International Trade

    • 1862 Words
    • 8 Pages

    Introduction & Meaning of International Trade 2 Advantage of International Trade 3 Disadvantage of International Trade 4 Benifits of International Trade 5 Risks of International Trade 6 Conclusion International trade International trade is the exchange of capital, goods, and services across international borders or territories. In most countries, such trade represents a significant share of gross domestic product (GDP). While international trade has been present throughout…

    • 1862 Words
    • 8 Pages
    Powerful Essays