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International Trade

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From Latin commercĭum, he Commerce It is an activity that consists of purchase or sale from goods for its transformation, its resale or its use. It is a transaction that involves the exchange of one thing for another, usually money. International , meanwhile, is that belonging or relative to two or more countries or that has transcended the borders of a nation.

These two definitions allow us to refer to the notion of International Trade , which is the Comercial activity between two countries . In this sense, an exporting country sends products me services To an importing country.

In this sense, when it comes to international exports, it must be stressed that many expert economists agree that these are the fundamental basis for any company to not only consolidate itself in the market but also to grow strongly.

Specifically, currently exporting this type is considered to be essential considering not only the globalized world in which we live but also the crisis situation that certain countries are suffering. And in the latter case, one of the only solutions that their companies have to get afloat is international trade.

International trade is usually used as a synonym for world trade or foreign trade . This commercial modality implies the existence of open economies (that is, willing to allow the entry of goods from other countries).

In this matter it should be noted that there are a number of concepts and terms that are fundamental. Thus, on the one hand, there would be protectionism, which is the policy that is developed in a country with the clear objective of protecting national products against the arrival of other foreigners. The way to get that is none other than imposing on them the one that they have to face when paying a series of tariffs.

Specifically, those who bet on following this policy also stress that it is a way to balance what the balance of payments would be and to take care of national security, in terms of production.

Another important term in international trade is free trade. This is a position totally contrary to protectionism since it considers that the exchange and flow of goods between nations should be allowed without any type of clipper.

The international trade process was enhanced from the second half of the twentieth century , with the advancement of telecommunications and transportation. He capitalist system , already settled around the world after the fall of the Union of Soviet Socialist Republics (U.R.S.S.) , based its growth on free trade and the elimination of borders and obstacles.

There are various economic theories that explain the importance and need of international trade. Adam Smith (1723-1790) stated that goods should be produced in countries with the lowest production costs and from there exported to the rest of the world, what is known absolute advantage . David Ricardo (1772-1823), meanwhile, appealed to the comparative advantage , which emphasized the relative costs that arose from the comparison between countries.

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