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    International Trade

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    Uneeb Noor
    International trade involves the exchange of goods and services between citizens of different countries. It benefits countries by allowing for specialization and optimal allocation of resources, raising standards of living, and providing access to a greater variety of goods. Barriers to trade include tariffs, cultural differences, and political tensions. While international trade provides advantages like lower prices and increased efficiency, it also poses risks such as economic dependence and the import of harmful goods. Overall, trade can promote growth if supported by accommodative policies and infrastructure.

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    International Trade

    Uploaded by

    Uneeb Noor
    9 views13 pages
    International trade involves the exchange of goods and services between citizens of different countries. It benefits countries by allowing for specialization and optimal allocation of resources, raising standards of living, and providing access to a greater variety of goods. Barriers to trade include tariffs, cultural differences, and political tensions. While international trade provides advantages like lower prices and increased efficiency, it also poses risks such as economic dependence and the import of harmful goods. Overall, trade can promote growth if supported by accommodative policies and infrastructure.

    Original Description:

    ecnomics lectures

    Original Title

    Lecture 12

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    International trade involves the exchange of goods and services between citizens of different countries. It benefits countries by allowing for specialization and optimal allocation of resources, raising standards of living, and providing access to a greater variety of goods. Barriers to trade include tariffs, cultural differences, and political tensions. While international trade provides advantages like lower prices and increased efficiency, it also poses risks such as economic dependence and the import of harmful goods. Overall, trade can promote growth if supported by accommodative policies and infrastructure.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    9 views13 pages

    International Trade

    Uploaded by

    Uneeb Noor
    International trade involves the exchange of goods and services between citizens of different countries. It benefits countries by allowing for specialization and optimal allocation of resources, raising standards of living, and providing access to a greater variety of goods. Barriers to trade include tariffs, cultural differences, and political tensions. While international trade provides advantages like lower prices and increased efficiency, it also poses risks such as economic dependence and the import of harmful goods. Overall, trade can promote growth if supported by accommodative policies and infrastructure.

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    of 13

    INTERNATIONAL TRADE

    S. N0. CONTENT
    1. Introduction
    2. Classifications of International Trade
    3. Role or Importance of International Trade
    4. Benefits of International Trade
    5. Barriers to International Trade
    6. Reasons for International Trade
    7. Problems & Challenges of International Trade
    08. Advantages of International Trade
    09. Disadvantages of International Trade
    10. Conclusion
     Trade between two or more countries is called foreign trade
    or international trade. This involves the exchange of goods
    and services between the citizens of two countries. When
    citizens of one country exchange goods and services with the
    citizens of another country, it is called foreign trade.
     “The aim of international trade is to increase production and
    to raise the standard of living of the people. International
    trade helps citizens of one nation to consume and enjoy the
    possession of goods produced in some other nation.”
    International trade must be classified into three ways:

    1. Import Trade: The inflow of goods in a country is called


    import trade.

    2. Export Trade: The outflow of goods from a country is called


    export trade.

    3. Entrepot Trade: Many times goods are imported for the


    purpose of re-export after some processing operations. This
    is called entrepot trade.
    The Role and importance of international trade are as
    follows:

     Division of labor and specialization


     Optimum allocation and utilization of resources
     Raises Standard of Living of the people
     Generate employment opportunities
     Equality of prices
     Ensures quality and standard goods
     Facilitate economic development
     To improve quality of local products
     Availability of multiple choices
    There are some benefits of international trade:

     Efficient Allocation and Better Utilization of Resources

     Variety of Goods Available for Consumption

     Promotes Efficiency in Production

     Utilization of Surplus Produce

     Consumption at Cheaper Cost

     More Employment

     Reduces Trade Fluctuations


    There are some barriers to international trade:

     Cultural and social barriers

     Political barriers

     Tariffs and trade restrictions

     Standards

     Boycotts

     Anti-dumping Penalties
    Here are seven reasons for growing globally:

     Reduced dependence on your local


    market

     Increased chances of success

     Increased efficiency

     Increased productivity

     Economic advantage

     Innovation
    The following are the special problems of international trade:

     Distance
     Different languages
     Risk in transit
     Intense competition
     Difficulties in Payments
     Import and Export Restrictions
     Transport and Communications
     Lack of information about International Traders
    The main advantages of international trade are as
    follows:

     Optimal use of natural resources


     Availability of all types of goods:
     Advantages of large-scale production
     Stability in prices
     Increase in efficiency
     Promotes Competition
     Fall of Prices
     Speedy Industrialization
    The main disadvantages of international trade are as
    follows:
     Exhaustion of Resources
     Effect on Domestic Industries
     Effect on Consumption Habits
     Times of Emergency
     Economic Dependence
     Political Dependence
     Import of Harmful Goods
     Mis-utilisation of Natural Resources
     In conclusion it can be said that, international trade leads to
    economic growth provided the policy measures & economic
    infrastructure are accommodative enough to cope with the
    changes in social and financial scenario that result from it.
     In order to face the cross border competition challenges, a
    well functioning, national competition regime is insufficient.
     International trade opens up the opportunity for develop
    countries whereby it increases their capacity to produce and
    acquire goods. It should however be controlled so as to avoid
    the closure of some local companies.

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