Define international trade? Importance of International trade

The exchange of goods and services among different countries of the world is called International trade.

International trade
International trade

What is the Balance of Payments?

The difference between the value of a nation’s exports and imports of all goods and services over a period of time is called Balance of payments or Balance f trade. International trade.

Importance of International trade.

International trade is important for the growth and development of a country’s economy. It is a Barometer of the economic development of a country.

Explain the importance of international trade?

The importance of international trades can be summarized as the following:

International trades is a Barometer of the economic development of a country. It is mutually beneficial to the trading countries and the measurement of the economic development of a country.

It helps to exchange domestic goods having low growth potential for foreign goods with high growth potential.

The expansion of the market leads to a number of internal and external economies. It is necessary to meet the increasing demands of agriculture and industries.

What do you mean by international trade? Explain the various bases of international trades?

The exchange of goods and services among different countries of the world is called International trade.

Bases of international trade

Variations in the availability of natural resources among nations:- All the countries have not been endowed with similar natural resources. Some countries have certain resources which are more than what they require while others may lack the same resources. So surplus countries export and deficient countries import.

Marketable surplus:- Few countries produce more than what they required for their own consumption. So they have enough marketable surpluses and create trade relations with those countries having demand for their surplus production.

Level of technology:- The countries with a high level of technology export finished products to those low levels of technology countries. They demand raw materials for industrial growth from developing and underdeveloped countries.

Development of transport and communication:- Countries with a developed network of transport and communication have developed international trades and vice-versa.

Specialized goods: Some countries attain specialization in specific products. These specialized goods are in great demand in the international market and they encourage international trades.

Discuss the recent trends in international trades in the world.

Recent trends in international trades in the world.

The nature of international trade has changed significantly in modern times. After the industrial revolution, the nature of international trade was transformed.

Items of import and export consisted of raw materials such as ores, cotton, timber, food items like food grains, meat, milk, sugar, tea, and coffee.

Tropical regions mainly export primary products like grains, vegetable oil, rubber, mineral, etc to the temperate regions.

Temperate regions export items of industrial products like machines, cars, clothes, and chemical products.

Most of the industrial countries of Europe laid more emphasis on industrial production and met their food requirements through imports.

What is WTO and When did it come into being?

World Trade Organisation (WTO) is a permanent organization and regulates trade and services around the world. It came into being 1″ January 1995.

Examine the role of the World Trade Organisation in promoting international trades.

The main roles played by the World Trade Organisation in promoting international trades are:

To make international trades as free as possible by ensuring that the ground rules are made predictable and transparent.

To acts as a forum for trade negotiation.

Decides levels of tariff reduction and export subsidies.

Trade-related intellectual property rights lay down norms and standards.

To work as a neutral agency for settlement of trade disputes had even set up the Dispute Settlement Body (SDB).

What are trade creditors and trade debtor nations?

The countries with a positive balance of trade are known as trade creditor nations where their value of the total export is more than the value of the total import. USA, Russia, Australia, Japan, the UK, and France are the creditor nations.

While Countries with a negative balance of trade are also known as trade debtor nations When their value of exports is lower than the value of imports. India, China, Brazil, Pakistan, S.Africa and Iran are the debtor nations.

Definition of Human Geography Read Here

The exchange of goods and services among different countries of the world is called International trade.

The countries with a positive balance of trade are known as trade creditor nations where their value of the total export is more than the value of the total import. USA, Russia, Australia, Japan, the UK, and France are the creditor nations.

While Countries with a negative balance of trade are also known as trade debtor nations When their value of exports is lower than the value of imports. India, China, Brazil, Pakistan, S.Africa and Iran are the debtor nations.

The difference between the value of a nation's exports and imports of all goods and services over a period of time is called Balance of payments or Balance f trade. International trade.

World Trade Organisation (WTO) is a permanent organization and regulates trade and services around the world. It came into being 1" January 1995.

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