International Trade

Introduction:

When goods and services are exchanged within the boundaries of one country, it is called “Home Trade” and if the same exchange involves two or more different countries then it is known as “International Trade” some countries have got specialization in the production of particular items and others are granted by natural resources. For example, Saudi Arabia has the stock of oil, England has steel or iron and Africa has gold etc. Many countries are considered as agricultural and capitalists due to their production. So, these countries send and get the placed order of goods according to their need.

Foreign trade enlarges the market for a country’s output. According to Roberson it is an “engine of growth”. It increases domestic output and earns foreign exchange (Forex) for the country. It helps in the economic growth of country. The purchases from other countries are imports and sales to other countries are exports.

Definitions:

“It is when there is any dealing in goods or “services between two or more

countries, it is Foreign Trade”.

“Foreign Trade refers to exchange of goods and services between the

citizens of two or more independent countries”.

Kinds of Foreign Trade

Export Trade:

When a country sends goods and services to other countries, it is known as

Export Trade.

2 Import Trade:

When a country brings in goods and services Dfa Ho from other countries, it is

known as Import Trade.

3. Entreport Trade:

In entreport trade goods are imported from various countries with a view to export them to other country.