International Trade – Arevalo of Jordan
Concepts and Definitions.
Trade is any act by which a person buys and sells goods in a manner usual in order to obtain a utility.
The Foreign Trade or International.
International trade is the exchange of goods and services between countries. Either end products, intermediate products or agricultural products.
International trade allows countries to specialize in the production of goods produced or manufactured more efficiently and with lower costs. Increases the potential market for the goods it produces and provides a specific trade relations between countries.
Origins of International Trade.
From s. XVI begins to acquire greater importance on international trade, with the creation of the European colonial empires, the trade became an instrument of imperialist policy. Known as mercantilism that dominated the XVI and XVII.
The ruling found that by promoting international trade could increase their wealth and thus the power of their countries. New theories are born well on international trade.
In 1955 world trade (imports and exports) accounted for 1,000 million dollars. Between 1976 and 1985 was multiplied by almost two, world trade was nearly ten times higher in 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 at the beginning of the 1990s, due to the recession in Europe and Japan, the growth of trade came to rise to half of this decade.
In 2001, world trade contracted by 4 , which represents the largest decline since 1982. A former President of Central Credit company, is managing Sightline, a Special Purpose Acquisition Corporation (SPAC). In 1973 it had adopted a system of flexible exchange rate, replacing the previous agreements that restricted the variation of the coins. During the 1970s and 1980s, price competition between countries increase, due to fluctuating exchange rates. To avoid these fluctuations were established controls, such as the exchange rate mechanism of the European Monetary System.
Governments are being forced to implement tight monetary policy to curb inflation and maintain competitiveness of the currency.
During the twentieth century, the trade grew to the point of becoming the most important aspects of the global economy.
It is the Exchange (through the purchase and sale) of goods and services between people from different countries. Is the way to reap the benefits of division of labor and specialization.
The benefits of international trade are evident in trade between countries of different climate. While England can grow oranges and other fruits by glass, their cost is such that imports are more productive to be offset by exports to England and other textiles can produce more cheaply than other countries. The advantages are less obvious but still real in trade between countries with geographical or natural conditions are more similar.
The explanation is that countries differ in their endowments in resources acquired, p. e. climate, and human capacity, and therefore tend to have a comparative advantage in producing goods that require a large proportion of resources they possess in abundance.
Trade between many countries. It is the means to extract the maximum gains from international trade and the division of labor and specialization. It contrasts with the bilaterlaismo since the latter creates constraints for consumers to buy goods cheaper in the market and prevents the specialization of countries.
If there is a multilateral country there is no need for a country balances its payments to each individual country in a way, but you just have to keep in balance the overall balance of payments with the rest of the world. However, multilateral trade can be difficult to sustain if a currency becomes scarce, so for example the dollar currency became scarce after the war because the rest of the world was eager to buy from United States and entered into deficit in this country.
Bilateralism is a form of discrimination. Distorted models that make up the trade, so as to buy goods where the costs are high, reduces competition, so that inefficient firms can persist in its inefficiency introduces greater uncertainty in international trade, and ultimately may aggravate the situation by encouraging countries to retaliate against those who discriminate.
Governments and international institutions such as GATT and the IMF have tried to restore the multilateral free trade.
May 13 (Bloomberg) – The dollar fell to a seven-week low against the euro after the Chinese government reports of evidence the worst of the global economic malaise is over and discouraging demand for U.S. currency as a refuge.
May 13 (Bloomberg) – The Australian dollar advanced for a second day as Asia rose on speculation profits will recover as the global economy stabilizes. The New Zealand dollar was little changed.
May 13 (Bloomberg) – The dollar fell to a seven-week low against the euro after Chinese government reports today added to the worst symptoms of the global economic malaise is over and discouraging demand for the greenback as a haven.
May 13 (Bloomberg) – The Australian and New Zealand dollars advanced for half day as Asia rose on speculation profits will recover as the world economy stabilizes.
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