The definition of International trade isn't at all unlike
how we would normally define domestic trade. The only
difference is that the occurrence of trading crosses
geographical boundaries. A country would consider trading
Internationally in an effort to give their GDP a big boost
very quickly. International trading is nothing new to the
business world. We have been trading across boundaries ever
since we found ways to move past borders in the latest
modes of transportations but the way trading is done these
days is far more complicated and lucrative than it used to
be. Industrialization, globalization and formation of many
multinational corporations have all changed the way nations
deal with each other.
International trade is also important to the value of one's
lives today; imagine if our choices were limited to what we
can produce locally. Without the goods and services
available from other countries, we would be living in a
world confined to what we are given...this is against the
principle of growth of humankind.
Trading Internationally involves heavy costs because on top
of the price of the product or service, the nation's
government will usually impose tariffs, time costs and the
many other costs involved in moving (usually) the goods
across into another country where language, system, culture
and rules are considered a big hindrance.
One of the largest movers in the International trading
world that we have today is China where labor is plentiful
and cheap. Many labor-intensive products designed and
produced by United States and other European countries are
assembled or manufactured in China where labor is
inexpensive. This is typical because it's a move that can
save the original country a lot of time and money.
Furthermore, with the opening of door of China, citizens
now have more income opportunities to make life better.
However, when a country deals a lot with International
trade, although it creates exponential income opportunities
for the locals, by importing or exporting too much of
something can cause damage to the local scene. During
recession, countries suffer local pressure to change laws
governing International trade to protect the local
industries. The most painful and memorable of such incident
is the Great Depression. Each country dealing with
International trade have their very own laws and bylaws
which governs their trading policies but on a global level,
trading activities are monitored and done through the World
Trade Organization.
The role of WTO is to ensure that there is peaceful and
mutually benefiting business atmosphere. Trading amongst
each other can cause minor unwanted rifts between parties
concerned and if left to sizzle can cause major problems on
the International front. In the event such problems are
detected or voiced, the WTO can step in and take precedence
over the disputes by holding talks, discussions and finding
ways of solving the International trading problems
amicably. One of the ways to do this is to sign agreements
or multilateral agreements not unlike the FTAA between the
Buenos Aires on the Free Trade Area of the Americans.
Don't be surprised but the people who benefit from all
these International trading activities are the small
businesses and medium-sized organizations who have good
products or services to offer. So, if you're thinking about
going this way, if you hit it right, you could be riding a
long successful wave of business deals.
----------------------------------------------------
Paul is active in various social and community programs
aimed at providing equal opportunity to
education,health,jobs and business opportunities to all
regardless of race or religion. Paul has over 10 years
experience in managing a successful multi-million dollar
advertising and publishing company.Paul can be reached at :
http://www.tradeplanets.com
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