Summary of International Trade

Summary of International Trade

In analyzing the economy, we review the dimension that transcends the borders of a country, ie, addressing the economic problems for international purposes.The importance of international relations in the sphere of trade, politics or culture has reached a global level, a deeper meaning to such an extent that one can not speak only of goods but also trade integration schemes.

Is exchange of capital, goods, and services across international borders or territories. In most countries, it represents a significant share of gross domestic product (GDP). While international trade has been present throughout much of history, its economic, social, and political importance has been on the rise in recent centuries.
The international economy poses to study the problems of international economic transactions, therefore when we talk about international economic co link international trade factors.International trade is the exchange of economic goods that takes place between the inhabitants of two or more nations, in such a way that gives rise to outflows of goods from one country (export) entries of goods (imports) from other countries.The data show a definite statistical link between freer trade and economic growth.Economic theory points to compelling reasons for the link. All countries, including the poorest, have assets-human, industrial, natural and financial, which can be used to produce goods and services for their domestic markets or to compete overseas.Economics tells us that we can benefit when these goods and services are traded.Put simply, the principle of "comparative advantage" says that countries prosper first by taking advantage of their assets to concentrate on what they can produce best, and then exchanging these products for products that other countries produce best.
Causes of International TradeInternational trade is due to two causes:
-Distribution of economic resources-Price difference, which in turn is due to the possibility of producing goods in accordance with the needs and tastes.