International Trade

It is the buying and selling of goods and services across national borders or in another term is an exchange of capital, goods, and services across international borders or territories. In most countries, it represents a significant share of Gross Domestic Product (GDP). The exchange includes import that the countries buy goods or services from other countries outside and export that the countries sell goods or services overseas. Trading of goods is available with clothes, food, stocks, wines, jewellery and many more products. Trading of services is also done like banking, consulting, tourism, or transportation. The international trade play an important role in the development of a country’s economy in general and in the development of an individual organisation in particular. International trade help a country become richer because rather than the country tries to produce every products which encompass products with no comparative and absolute advantages by itself, it could specialise some particular products which have the absolute and comparative advantages. Many countries are gifted with natural resources; therefore, they can manufacture products with cheaper production cost and sell at cheaper prices. International trade allows countries and customers have more chances to expose services and goods that are not available in their own country.

International trade is the backbone of our modern, commercial world, as producers in various nations try to profit from an expanded market, rather than be limited to selling within their own borders. International trade has been present throughout much of history. Its economic, social, and political importance has been on the rise in recent centuries. International trade cost a lot of money because a border typically imposes additional costs such as tariffs, time costs due to border delays and costs associated with country differences such as language, the legal system or culture. International trade is mostly...