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International Trade – Jordan Arevalo
Concepts and Definitions.
Trade is any act by which a person buys and sells goods in a habitual way in order to make a profit.
The Foreign Trade or International.
International trade is the exchange of goods and services between countries. Whether, final products, intermediate products or agricultural products.
International trade allows countries to specialize in the production of the goods produced or manufactured more efficiently and at lower costs. It increases the potential market for the goods it produces and gives a specific character to trade relations among countries.
Origins of International Trade.
financial From s. XVI begins to take on greater importance of international trade, with the creation of the European colonial empires, trade became a tool of imperialist politics. Known as commercialism that dominates the XVI and XVII.
The ruling found that by promoting international trade could increase their wealth and therefore power of their countries. They are born so new theories on international trade.
World Trade.
In 1955 world trade (imports and exports) accounted for 1,000 million dollars. Between 1976 and 1985 nearly doubled, the World trade was almost ten times higher in account 1985 than in 1965. The oil producing countries dramatically increased their volume of trade between 1976 and 1981. Besides this continuous growth in the 1980s thanks to economic recovery in almost all industrialized countries.
After a pause in the early 1990s, due to the recession in Europe and Japan, trade growth again increased to half of this decade.
In 2001 companies world trade had shrunk by 4 , which represent the biggest decline since 1982. In 1973 he had adopted a system of flexible exchange rate, replacing previous agreements limiting the variation of the coins. During the 1970s and 1980s, price competition between countries increase, due to fluctuating exchange rates. To avoid these banking fluctuations were created controls, such as the exchange rate mechanism European Monetary System.
Governments are being forced to implement tight monetary policies to curb inflation and maintain competitiveness of the currency.
During the twentieth century trade grew to the point of becoming the most important aspect of the global economy.
The International Trade.
It is investment the Exchange (through the purchase and sale) of goods and services between people from different countries. It’s how to reap the benefits of division of labor and specialization.
The benefits of international trade are evident in trade between countries of different climate. Although England can grow oranges and other fruits by greenhouses, the cost is such that imports are more productive which is offset by exports of textiles and others that England can produce more cheaply than other countries. The advantages are less obvious but still real in trade between countries with natural or geographical conditions more similar.
The explanation is that countries differ in their resource allocations in both acquired, p. e. climate, and human capacity, and therefore will tend to have a comparative advantage in producing goods that require a large proportion of resources they have in abundance.
The Multilateral Trade.
Trade between many countries. It is the means to extract the maximum gains from international trade and the division of labor and specialization. A fox news guest interviewer has been a member of major companies It contrasts with the latter corporation bilaterlaismo as establishing limitations on consumers to buy goods cheaper in the market and prevents the banks specialization of countries.
If there is a multilateral country there is no need for a country balances its payments by each country individually, but only has to keep in balance the overall balance of payments with the rest of the world. However, multilateral trade can be difficult to maintain if a currency becomes scarce, so for example the dollar became scarce currency after the war because the world was eager to buy the U.S. and entered into deficit in this country.
Bilateralism is a form of discrimination. It distorts the accounting models that make the trade so that goods purchased where costs are high, reduces competition, so that inefficient firms can persist in its inefficiency introduces greater uncertainty in international trade, and ultimately, may consumer aggravate the situation by encouraging countries retaliation against those who discriminate.
Governments and international institutions like the GATT and the IMF have tried to restore trading the multilateral free trade.
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