Overview of International Trade
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Types of International Trade:
- Export trade: selling domestic products to another country.
- Import trade: purchasing foreign products.
- Entrepôt trade: combining exporting and importing by importing goods from one country and re-exporting the goods after adding value.
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Benefits of International Trade:
- Economic growth and development for countries.
- Greater market access and opportunities for domestic companies.
- Quality improvement, cost reductions, and innovation.
- Lower prices, greater choice, and availability of goods and services for consumers.
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Impact of Globally Integrated Markets:
- Changes in economic conditions, policies, or events in one country can affect others.
The Major Types of Foreign Trade
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Types of International Trade:
- Export trade: selling domestic products to another country.
- Import trade: purchasing foreign products.
- Entrepôt trade: combining exporting and importing by importing goods from one country and re-exporting the goods after adding value.
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Economic Benefits:
- Enabling countries to obtain goods they cannot produce domestically or at lower costs.
- Specialization in producing goods where they have a comparative advantage.
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Advantages of International Trade:
- Economic growth and development.
- Market access and opportunities for domestic companies.
- Quality improvement, cost reductions, and innovation.
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Global Market Integration:
- Impacts of changes in one country on others due to interconnected markets.