International Trade UNIT I Meaning and Definition of

International Trade UNIT I

Meaning and Definition of International Trade Foreign trade is exchange of capital, goods, and services across international borders or territories. In most countries, it represents a significant share of gross domestic product (GDP). While international trade has been present throughout much of history, its economic, social, and political importance has been on the rise in recenturies. According to Wasserman and Haltman, “International trade consists of transaction between residents of different countries”. According to Anatol Marad, “International trade is a trade between nations”. According to Eugeworth, “International trade means trade between nations”.

Need for Export Promotion 1. Unfavourable balance of Trade 2. Increasing Imports 3. Foreign exchange famine 4. Successful execution of Development schemes 5. Self-sufficient and self-generating economy 6. Marketing of New products 7. Changes in the Direction of trade

Characteristics of International Trade 1. Immobility of Resources 2. Heterogeneous Markets 3. Trade among different nations 4. Different types of currencies 5. Political groups 6. Geographical and climatic 7. Problems of balance of payments 8. High transport costs 9. Economic environment

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