What is the meaning of international trade?
International trade, economic transactions that are made between countries. Among the items commonly traded are consumer goods, such as television sets and clothing; capital goods, such as machinery; and raw materials and food.
What are the reasons for international trade?
The five main reasons international trade takes place are differences in technology, differences in resource endowments, differences in demand, the presence of economies of scale, and the presence of government policies.
What are the main objectives of international trade?
Standard international trade models universally consider maximizing the availability of inexpensive goods as the objective of international trade. They then go on to show that tariffs and other impediments to trade cause a loss of economic efficiency.
What are the advantages and disadvantage of international trade?
Advantages and Disadvantages of International Trade
- Advantages of specialization and division of labour.
- Availability and cheapness of commodities.
- Large scale production.
- Creation of industrial society.
- Stabilization of internal price.
- Availability of commodities whose costs of production are high.
- Improvement in transport.
What is the dark side of international trade?
Illict Trade – The Dark Side of Globalization This darker side of global trade is thriving with hundreds of billions of dollars in illicit commerce that includes trafficking in narcotics, persons, and endangered wildlife, among other goods and commodities.
What are the 3 major types of foreign trade?
There are three types of international trade: Export Trade, Import Trade and Entrepot Trade.
What are the two main features of international trading policy?
The two main features of the international trade policy include: Independent national economic policy. Independent national economy entails an economy which is build free from dependence on others and which stands on its own and is aimed at serving own people.
How many models of international trade are there?
Three standard models typically discussed in the theory of international trade are the Ricardian model, the Heckscher–Ohlin model and the Specific-Factors model.