International Trade

Topic

International trade

Instructions

Read pages 839-854 and 857-865 of Economics.

Consider the following as you read:

• What are the key facts about international trade?
• How do differences between world prices and domestic prices prompt exports and imports?

Answer preview

International trade involves exchange of capital, goods, and services across national borders. International trade remains a multi-trillion dollar system, which is central to many countries’ GDP (McConnell, Brue, & Flynn, 2013). The system is known for the promotion of involved countries’ exportation and importation while extending its impact on growth to the upcoming enterprises as well as providing commercial diplomacy that supports business interests across the world. Generally, big economies have relied on the international trade to exploit their resources through production and exportation while attaining similar benefits from foreign countries who also posses unique resources to export. In this case, international trade lays foundation for fair distribution of resources across the world, as countries are able to give out what it possesses as an advantage and receive what it lacks in its economic resourcefulness.

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