International Trade

"International trade" is a trade made by a resident of a state with a population of other countries on mutually agreed basis. Population in question can be inter-individual (individual to individual), between individuals with the government or a government with other governments. In practice, this trade is more complicated than in domestic trade. The complexity is caused by factors such as:

1. Region or country differences between buyers and sellers.
2. Goods must be shipped and transported from one country to another through various regulations such as customs, derived from the limitations issued by the respective governments.
3. From country to country there are differences in language, currency, estimates and scales, the law in trade and so on.
BENEFITS TO INTERNATIONAL TRADE
Every country that trades with other countries will certainly gain many benefits for the country. Benefits include:

1. Acquire goods that can not be produced in their own country
Many factors influence the difference in production in each country. These factors include: condition of geography, climate, level of mastery of technology and others. With the international trade, each country is able to meet the needs that are not produced.

2. Benefit from specialization
The main causes of international trade activity is to earn profits realized by specialization. Although a nation can produce a product the same kind as those produced by other countries, but they can sometimes be better if the country is importing goods from other countries. For example: the United States and Japan have the ability to produce cloth. However, Japan can produce more efficiently than the United States. In these circumstances, to enhance the efficiency of the use of factors of production, the United States needs to reduce the production of cloth and importing goods from Japan. By conducting specialization and trade, each country can obtain the following advantages
a. Factors of production that each country can be used more efficiently.
b. Each country can enjoy more goods than can be produced domestically.

3. Expanding Markets and Increase Profitability
With the international trade, means that market share not only in domestic market but expanded into overseas markets so businesses can maximize productivity to obtain the amount of product that a lot of flavor without any fears of over-production, resulting in falling prices of these products.

4. Transfer of modern technology
Foreign trade allows a country to learn a more efficient production techniques and ways of management that is more modern.

About The Author

Bie, that's my name. Im just an ordinary blogger.Ea eam labores imperdiet, apeirian democritum ei nam, doming neglegentur ad vis. Ne malorum ceteros feugait quo, ius ea liber offendit placerat, est habemus aliquyam legendos id. Eam no corpora maluisset definitiones.

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