DEFINITION OF INTERNATIONAL TRADE

Drag to rearrange sections
Rich Text Content

  International Trade - definition, meaning, and examples

The expression "international trade" refers to the whole flow of goods (goods) between different countries. In the broad sense, we also include the flow of market services.

THE DYNAMICS OF INTERNATIONAL TRADE

International trade is the collection of goods, services and capital traded between at least two countries. It also refers to the organization of international trade between two or more economic areas: trade settlement methods, customs measures, exchange risk management, etc.

The data collected by the various international debt collections organizations on the flow of international trade in goods and services, between a country and the rest of the world or between two trade zones make it possible to measure and quantify international trade. The trade balance is one of the main indicators of a country's performance in international trade. The trade balance refers to the difference between exports and imports. To know all of the trade between a national economic space and the rest of the world, it is necessary to refer to the current account balance.

THE DEVELOPMENT OF INTERNATIONAL TRADE

  International Trade and Development Nexus - ECDPM

Between 1980 and 2015, international trade has multiplied by 7.8 according to the World Trade Organization (WTO), while the Gross Domestic Product (GDP) has multiplied by 6.8, according to figures communicated by the World Bank. This is mainly due to the general reduction in protectionist measures on trade in goods and services.

The rapid development of international trade has been accompanied by major transformations in the structure of these: the share of services and manufactured products and their weight in world trade have increased considerably, to the detriment of agricultural products. They now hold a central place in international trade. The development of world trade has also resulted in the growing interdependence and openness of economies.

What are the dynamics of international trade?

Changing Dynamics of International Trade | by Munish Randev | Medium

International trade deals with all goods, services and financial flows being the object of a commercial exchange between two countries. This includes in particular the organization of international trade between several different national economic spaces. This therefore brings up points such as:

Methods of trade settlement;

Customs regulations and measures;

Management of currency exchange risks;

The data gathered by the many international trade organizations concerning the flow of international trade in goods and services make it possible to identify and measure international trade. The trade balance is one of the major indicators used to evoke a country's performance in terms of international trade. Also, the trade balance refers to the difference between the value of exports and the value of imports. To have in mind the total amount of trade between a country and another international economic space, we must look at the indicator of the current account. Read more about best debt collection agency.

How did international trade develop?

According to data from the WTO (World Trade Organization), over the period 1980-2015, international trade has multiplied by 7.8, the GDP (Gross Domestic Product) has been multiplied 6.8 times. The main source of such a development of international trade is the general policy of reducing national protectionist measures, especially on subjects such as trade in goods and services. The goal is to find new prospects internationally.

Such a development of world international trade has also been accompanied by a certain interdependence and considerable opening up of the various national economic spaces.

rich_text    
Drag to rearrange sections
Rich Text Content
rich_text    

Page Comments