The International Trade

Meaning On International Trade
International trade is the exchange of goods and services and capital between countries and ter- ritories without much obstruction. This relatively new concept has flourished over the years (in different forms) and continues to grow as a result of the many benefits it has offered to differ- ent countries across the globe. Significant portion of countries’ gross domestic product comes from this type of trade. With the help of modern production techniques, highly advanced trans- portation systems, outsourcing of manufacturing and services across different countries coupled with rapid industrialization, the international trade system is growing very fast.
The UK has benefitted immensely from international trade. Its significance to the UK’s current economic growth cannot be overemphasized. It has resulted in increased efficiency within the uk economy; and also allowed it to participate freely in the global economy with high inflows of foreign direct investment; and the greater utilisation of resources to provide the consumer with limitless array of choices in the marketplace, both locally and internationally. This is all the more appreciated when we see the uk economy exploiting its comparative advantage in sectors where it has nurtured a stronger potential of expanding its market share e.g. pharmaceuticals and research & development.
Benefits to UK business organisation
1. A country may import things which it cannot produce: International trade enables a
country to consume things which either cannot be produced within its borders or pro- duction may cost very high. Therefore it becomes cost cheaper to import from other countries through foreign trade.
2. Maximum utilization of resources: International trade helps a country to utilize its re- sources to the maximum limit. If a country does not takes up imports and exports then its resources remain unexploited. Thus it helps to eliminate the wastage of resources.
3. Benefit to...