International Trade for a Global Economy of Supply and Demand!

The exchange of goods and products among countries is known as international trade. It is very beneficial for the global economy. International trade increases the growth of world economy. In this growth and development of global economy the or prices affect and are exaggerated by the global proceedings and events.

Global trading gives chance to the buyers and countries to discover new goods and products that are not available in their countries. Global market is the vast market in which every product or good can be found. Such as clothes, jewelry, stock, oil, currencies etc. Services like transportation, consulting, banking and tourism can also be traded.

A product or good that sold in a global market is an export and the product or good that is purchased from the global market is an import. The basic principle of international trade is to buy goods or products from the country who is selling on the lowest price and sell your goods and products to the country that is purchasing on the highest price.

International market expands our domestic markets to the global market for different products and services that are commonly not available to us. International trade creates a great competition in the market. International market also creates competition in the prices of goods and products that gives an opportunity to the consumer to bring the cheapest product to home.

Advantages of International Trade:

Domestic competitiveness improved by international trade
Take advantages from the global trade technologies
International trade maintain the cost competition in your domestic market
The sales of your product increases in international trade which raise the profit
The sales possibilities of your existing products increases
You can get the shares of global market
Your dependence on existing markets decreased as you have a global platform
Expends your business from the domestic level to a global level
Seasonal products will not remain unsold as there is always a buyer for every product

Disadvantages of international trade:

You have to hire staff to control international trading
Sometime you need to change your packaging and occasionally the main product needs some innovation for being presented in the international market
Long-term gains are attained after a long time lag
You needs to develop a new material for the promotion of your product
You may need to wait for so long to get the payments

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