INTERNATIONAL TRADE

International Trade

International Trade

Introduction

International trade refers to the exchange occurring between different countries essentially in goods and services. International trade gives rise to a global economy, in which prices, or demand and supply, affect or affected by global events. There are major changes occurred in international trade as with in any country political or an economy change occurs. For example, political changes in Asia could result in an increase in labor cost, thereby increasing the cost of manufacturing for any American product based in Asia. On the contrary if there is a decrease in labor cost than it will cost lower to customers. International Trade allows countries to expands there markets of goods and services globally. As a result, International trade creates greater competition with more competitive prices that a consumer has to pay. International trade also provides a platform for wealthy countries to use their resources wisely. They can use their labor, capital and technology more efficiently to be competitive. Some countries may produce the aforesaid goods more efficiently than any other country, and therefore, selling it more cheaply. The countries unable to produce goods can obtain it by trading with other country, which is known as the specialization in International trade. International trade is not only efficient but, it also allows countries to participate in the global economy, this result in an increase in foreign direct investment (FDI) which is the amount of money invested by individual in foreign companies and other assets. This paper will be discussing different author's research philosophy, approaches, and strategy employed with respect to International trade. The research methodology used in the paper will be the “The Research onion” (p.108) introduce by Saunders et al. (2009).

Discussion

The first article is about the competitive advantages that can be attained by participation and utilization in global markets. The author philosophy in the paper discusses about the possibility of small business functioning in International markets, with the use of bank as controlling intermediary via commercial letter of credit use globally as an International trade instrument. The inductive approach, and strategy employed by a writer in the article inspects the letter of credit, and contrast it with the that of the usage with foreign exchange gateway used by small businesses globally. The paper discusses about the approaches used in International trade for a competitive edge by decreasing cost along the value chain, improvement and development of product lines as a result of import activities. The paper provides suggestion relating to conformity and financial troubles that are linked with letter of credit in lieu of letter of credit relating to small business acquisitions.

The second paper discusses about the ethics of doing business globally, as many companies confront with ethical issues when they globally. Every country has certain policies and procedures for International trade and every other country and businesses have to comply with those fundamental policies and procedure for engaging in trade with them. The author's research in the paper examines about the importance of global ethical business responsibilities for ...