International Trade And Its Effects On The World

International trade has been a staple of the world economy even before sailors ventured out into the ocean. Presenting fantastic articles of cloth, precious minerals, exotic art, strange foods and other amazing merchantable items for sale at markets abroad was a merchant's gold mine. Even brought him and his family fame and fortunes. Today the world’s economy depends on international trade.

The global economy needs free trade. Countries need free trade. Trade with other countries occurs at some level in every country globally. There may be some indigenous tribes within some countries that can lay the claim that they are self-sufficient, however, there is not a single country that can say the same. Proponents of an open trading system contend that international trade results in higher levels of consumption and investment, lower prices of commodities, and a wider range of product choices for consumers (Carbaugh, 2009, p26). Free trade is necessary. How do countries decide what to import and what to export?

The reason for international trade is really an extension for good relation with other country or providing the other nation with financial aids etc. the reason for any company to go global is because of the following reasons.

Culture is described as a set of shared attitudes, values, goals, and practices that set apart itself from the others. When a company establishes a business in another country, they must keep in mind the different cultures. There might be a difference in communication, religion, ethics, and values that a company shall adapt too in order to be successful. If the local culture is ignored, it could result in an unsuccessful business, protests, or boycott of the company’s goods and services. Companies that are interested growing internationally have to spend the time and money researching and gathering data about the different cultures before establishing their business. Not only does the company have the responsibility of having to respect the different cultures but also their own when conducting business internationally. One of the biggest struggles of

According to Zimmermann (2015) Culture is the distinctive features and knowledge of a specific group of people, outlined by everything from language, religion, cuisine, social habits, music and arts. The Center for Advance Research on Language Acquisition goes a step further, defining culture as mutual patterns of behaviors and interactions, cognitive constructs and understanding that are learned by socializing. Thus, it can be seen as the growth of a group individuality fostered by social structures unique to the group.

The trade policies around the world are different depending on which country a person lives in. There are many different regulations because there are so many different foreign policies. If a person wants to be successful in doing business globally, then they would have to abide by the country they are interested in doing business with, standards of how to do business. It would be disrespectful to try to do business with another country and not know any of their customs or beliefs, because what you are bringing to the table could be offensive to them which could leave you empty handed if one does not operate right under the business standards of the foreign company.

International trade is not only a way for a country to receive merchandise, but it can also have an impact on the economy. This is very important when it comes to acquiring materials to produce final products. With this, a key factor is companies are able to expand to more consum-ers and open new markets. Additionally, if they are to import raw materials there is the potential that they can produce more advanced products that will benefit others. The amount of careers created will help others buy merchandise and even develop new technology. In the end, coun-tries are able to move up in the economic structure due to trading. First, it should be determined what is required to be considered international trade.

According to Zimmermann (2015) Culture is the characteristics and knowledge of a particular group of people, defined by everything from language, religion, cuisine, social habits, music and arts. The Center for Advance Research on Language Acquisition goes a step further, defining culture as shared patterns of behaviors and interactions, cognitive constructs and understanding that are learned by socialization. Thus, it can be seen as the growth of a group identity fostered by social patterns unique to the group.

International trade is the exchange of capital, goods, and services across international borders or territories, which could involve the activities of the government and individual. In most countries, such trade represents a significant share of gross domestic product (GDP). This type of trade allows for a greater competition and more competitive pricing in the market. The competition results in more affordable products for the consumer. The exchange of goods also affects the economy of the world as dictated by supply and demand, making goods and services obtainable which may not otherwise be available to consumers globally. In the topic of trade economists agree, it is that trade among nations makes the world

According to Zimmermann (2015), Culture is the characteristics and knowledge of a particular group of people, defined by everything from language, religion, cuisine, social habits, music, and arts. The Center for Advance Research on Language Acquisition goes a step further, defining culture as shared patterns of behaviors and interactions, cognitive constructs and understanding that are learned by socialization. Thus, it can be seen as the growth of a group identity fostered by social patterns unique to the group.

Advanced transportation, industrialization, globalization, multinational corporations as well as outsourcing all has major impacts on the international trade and its increase is crucial for continued of globalization (Brown Consultancy Services, 2012).Without the existence of international trade then it would mean that many countries would have limited types of goods and services within the borders of their countries.

The first point I will be covering is the history of international trade, and the theory behind it. David Ricardo the forerunner on international trade, created and published one of the first theories of international trade in 1817. He proposed the thought that if “England produces cloth it may require the labor of 100 man for one year; and if she attempted to make the wine, it might require the labor of 120 men for the same time…” he then went on to say that if “Portugal produced the wine, it might require only the labor of 80 men for one year and for the cloth to be produced by 90 men for the same time.” It clearly makes sense for England to import the wine and cloth, and find something they can make cheaper than Portugal and then they can export to them.

International trade is historically the oldest and most widespread form of external economic relations. It is a movement of goods that represents a foreign exchange, that is, goods cross the boundaries of the individual countries or economic unit. Foreign trade links the country's internal economy with the world economy and fulfills important functions in the process of developing the productive forces and international division of labor. (Markusen, 1995)

International trade is the exchange of capital, goods, and services across international borders or territories or in other words is the process of import and export. international trade has been present throughout much of history its economic, social, and political importance has been on the rise in recent centuries. Industrialization, advanced in technology transportation, globalization, multinational corporations, and outsourcing are all having a major impact on the international trade system. While In most countries, such trade represents a significant share of gross domestic product (GDP). Increasing international trade is crucial to the continuance of globalization this is because without

Besides, within a few decades, the international business grew very quickly, as in the growth of technology, liberalization of government policies on the cross - border movement of trade resources, official support and facilitates international trade. In addition, with the development of institutions to support, international business became more successful in their market. Besides, technology also has an important impact on the international business, it is because the demand for the new products and services has increased, the number of business transactions has increased and the capability of managers to control all foreign operations have better for the better.