1.International Trade                          

International Trade measures the difference between imports and exports of both tangible goods and services. The level of the international trade balance, as well as changes in exports and imports, indicate trends in foreign trade. Changes in the level of imports and exports, along with the difference between the two (the trade balance) are a valuable gauge of economic trends here and abroad. Imports indicate demand for foreign goods and services in the nation and exports show the demand for national goods in overseas countries. Countries have different endowments of factors of production. They differ in population density, labour skills, climate, raw materials, capital equipment, etc. These differences tend to persist because factors are relatively immobile between countries. Therefore, the global economic cannot develop fast without international trade.

There two advantages of International Trade.

(1)  Absolute advantage: A country has an absolute advantage over another in the production of a good if it can produce it with less resource than the other country.  

(2)  Comparative advantage: A country has a comparative advantage over another in the production of a good if it can produce it at a lower opportunity cost: i.e. if it has to forgo less of other goods in order to produce it.

International Trade Information web Pages:

*centre for International Trade

*Web Resources for International Trade

*objective of International Trade Research Work in the World

  Bank

*International Trade Law 1

*International Trade Law 2

                                          

 

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