Key Components of International Trade
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There are three main types of international trade: export trade, import trade, and entrepôt trade.
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International trade provides benefits like obtaining cheaper goods through imports. Countries can also specialize in goods where they have an advantage.
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Globally integrated markets mean events in one country can impact others. For example, rising exporting country costs could increase prices or disrupt supply chains for importing countries.
Major Types of Foreign Trade
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There are three main types of international trade: export trade, import trade, and entrepôt trade.
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International trade provides economic benefits. Enables countries to obtain goods they cannot produce domestically or at lower costs by importing. Countries can specialize in producing certain goods where they have an advantage.
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Changes in one country can impact others through integrated markets. For example, rising costs in an exporting country could affect prices and disrupt supply chains for importing country consumers and companies.