Foreign trade is nothing but trade between the different
countries of the world. It is also called as International trade, External
trade or Inter-Regional trade. It consists of imports, exports and entrepot.
The inflow of goods in a country is called import trade whereas outflow of
goods from a country is called export trade. Many times goods are imported for
the purpose of re-export after some processing operations. This is called
entrepot trade. Foreign trade basically takes place for mutual satisfaction of
wants and utilities of resources.
Global Business
A panoramic view of foreign trade.
Wednesday, May 31, 2017
Tuesday, May 30, 2017
Types of Foreign Trade
Foreign Trade can divided into followin two groups:
1.
Import Trade: Import trade refers to purchase of goods by one
country from another country or inflow of goods and services from foreign
country to home country.
The
word “import” is derived from the Word “port”, since goods are often shipped
via boat to foreign countries. Along with exports, imports from the backbone of
international trade; the higher the value of imports entering a country,
compared to the value of exports, the more negative that country’s balance of
trade becomes.
2. Export Trade: Export trade refers to the sale of goods by one country to anoter
country or outflow goods from home country to foreign country. The sale of such goods adds to the producing nation’s gross output. If
used for trade, exports are exchanged for other products or services in other
countries.
Exrports are one of the oldest forms of economic transfer and occur on a
large sclae between nations that have fewe restrictions on trade, such as
tarifs or subsidies.
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Foreign trade is nothing but trade between the different countries of the world. It is also called as International trade, External ...
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Foreign Trade can divided into followin two groups: 1. Import Trade : Import trade refers to purchase of goods by one count...