Trade has grown remarkably over the last century
The combination of national economies into a global economic is one of the most important developments of the last century. This process of integration, often called Globalization, has materialized in a remarkable growth in trade between countries.
International Trade mean to the exchange of the goods and services from one country to another. In other words, imports and exports. A global company is a company doing business worldwide which has trade in many countries in the different regions of the world..
It’s moving in two directions:
1. Imports – Buying goods and services from other country to our country .
2. Exports –Selling Goods and services to other country.
International trade helps boost nations’ wealth.
When a person or company purchases a cheaper product or service from another country, living standards in both nations rise. There are several reasons why we buy things from foreign suppliers. Perhaps, the imported options are cheaper. Their quality may also be better, as well as their availability.
The exporter also get benefits from sailing good to other country it would not be possible if it solely sale it in domestic market. The exporter may also earn foreign currency. It can subsequently use that foreign currency to import things.
International trade supports the world economy, where prices or demand and supply are affected by global events. There are three types of international trade: Export Trade, Import Trade and Entrepot Trade. Export and import trade we have already covered above. Entrepot Trade is a combination of export and import trade and is also known as Re-export. It means importing goods from one country and exporting it to another country after adding some value to it.
For example : , India imports gold from China makes jewelry from it and then exports it to other countries.
Prof. Dr. Rashmi Gujrati ,
Professor Principal (KCSMCA)
Regulatory Board member of In Traders Academic Platform
Member ICA, IAA, AICP, FSSER, AASE,IBIMA