International Trade



International Trade

Introduction

Trade is the mean of getting hands over those resources that a country requires, and providing countries with those that a certain nation has in abundance. Trade has been the main source of earning income for the country. It still is, and is considered by the nations as a healthy way of promoting international relations. Trade ensures that a country gets what it requires and sustains its economy. A country engages in trade because it is not self sufficient. It means that if a country was capable of producing all the resources and manufacturing all the goods that it needs, there would have been no need for the country to do trade, (Bernard, 2007). International trade involves the transfer or the exchange of services and the capital goods across all the international borders. In many nations, international trade consists of a very essential share in the GDP.

Discussion

International trade was present in all the major eras and ages of the world. It was because of the international trade, that many lands and uninhabited regions in the world were discovered. International trade led to many wars and battles. The nations that grew up to become the world powers, engaged themselves in trade and strengthened their international trade relations. The idea was to enhance the resources and develop more infrastructures and maintain the economy and lead it towards growth and further development, for that matter, (Gereffi, 1999).

The social, political and economic significance of international trade has received immense importance over the past few decades. Due to globalization, industrialization, transportation and multinational corporations there have been major impacts on the trade systems at the global level. Countries have realized that it is important for them to increase the trade at the international level, if they wish to continue with the ...