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International trade


International trade has the sense that not much different from the definition of trade in general. Trade is defined as the activities of the exchange or sale and purchase transactions between two or more parties. The parties that can trade are individual, institution or government. Thus, international trade is an activity of the exchange or trade done between individual to individual, the individual with the government, or government of a country with the governments of other countries.

- The factors that promote international trade
International trade is conducted between countries can be classified into two, namely:
a. Activities sell goods overseas called export and people who did called exporter.
b. Activities buy or bring in goods from other countries into the country called the import and the person who does is called the importer.

Activities of international trade, both exports and imports is very important to the economy of a country. Therefore, every country will try to improve it for the benefits increases. Some of the factors that encourage international trade is as follows:
a. Each country can not meet its own needs.
b. Each country will benefit from international trade compared with goods produced domestically.
c. Each state has a different cost of production to produce certain goods.
d. Each country has different natural resources.

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