International trade
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Definition/short descriptionInternational trade is exchange of capital, goods, and services across the border or territories of country. It represent a significant share of gross domestic product(GDP). While international trade has been present throughout much of history its economic, social, political importance has been on the rise in recent centuries. Industrialization, advanced transportation, globalization etc all having a major impact on international trade
In depthTrade is one of the vast occupation from which people are linked ages ago and we can say that from the time of barter system(when people did transaction through exchange of goods)people were also commited with trade.Now days trade play a great role in country development well trade is further more divided in two terms
Import:-When a country purchase commodities from other country or across the border this process is known as import Export:-When country sells commodities across the border or across the boundary of country is called export
International trade has been in existence throughout history and has an economic impact on the participating countries. Trade in most countries has a share of gross domestic product (GDP) and help to boost the country to overall the economy on a year basis International trade is a major source of economic revenue for any country or nation which is consider world power. With out international trade nation would be limited to the goods and services produced with in their own border. International trade is in principle not different from domestic trade as the motivation and behavoiur of the parties involved in trade does not change fundamentally depending whether trade is across the border or not. The main difference is that international trade is typically more costly than domestic trade. The reason is that border typically impose additional cost such as traiffs, time cost due to border delay, custom dutey etc
In the developed industrial countries, services now account for 50-60%of GNP. At the same time trade in services is thought to account for only about 20%-25% of the world trade.As comparetive advantage in the production of many manufactured goods has shifted to the newly industrializing countries (NICs),The developed industrial countries have become increasingly concerned with enhancement of trading oppportunities in services, particularly in areas such as financial services, insurance, telecommunications, transportation, computer and professional services(e.g architecture, engineering, law
There is a wide range of economics literature that attempts to define the nature of services, The factor that determine comparative advantage in services may often be rather different from those that determine comparative advantage with respect to goods. For instance, natural factor endowments such as land and minerals will be less importance than in the case of many goods, while man made factors such as knowledge and skill will be of paramount importance Nevertheless, one should be wary of exaggerating these difference for example country with beautiful scenery may have an advantage in the export of tourist services Traditionally, economist have attempted to define services largely by contrast with goods. Therefore definition have emphasized the intangibility or invisibility of services, their supposedly non-durable or transitory character, or the notion that unlike with goods, consumption and production occur simultaneously. It is however, possible to find exception to each of these definitions.For example, is there anything intangible or invisible about an architect's drawing or a design for an integrated circuit. With respect to transitoriness, as nicolaides notes a lecture or occasionally a bank transaction is longer than the life time of an ice-cream
The relevance of International_trade for Migration and/or Migration PolicyTrade theory assumed that goods could often often readily be traded across naional borders but that the factor of production employed to produce those goods (land,capital and labour) were fixed and immobile. In contemporary world, largely due to technological changes, this has become dramatically untrue of capital, and much less true of labour. However, the frequent political resistance of international mobility of people. Two prominent features of globalization in recent decades are the remarkable increase in trade and in migratory flows between industrializing and industrialized countries. Due to restrictive laws in the receiving countries and high migration costs, the increase in international migration has involved mainly highly educated workers. During the same period, technology in developed countries has become progressively more skill-biased, increasing the productivity of highly educated workers more than less educated workers. This paper extends a model of trade in differentiated goods to analyse the joint phenomena of migration and trade in a world where countries use different skill-specific technologies and workers have different skill levels (education). We calibrate the model to match the features of the Western European countries (EU-15) and the new Eastern European members of the EU. We then simulate the effects of freer trade and higher labor mobility between the two regions. Even in a free trade regime the removal of the restrictions on labor movements would benefit Europe as a whole by increasing the GNP of Eastern and Western Europe. Interestingly, we also find that the resulting skilled migration (the so-called "brain drain") from Eastern European countries would not only benefit the migrants but, through trade, could benefit the workers remaining in Eastern Europe as well. ExamplesMigration because of services Well the one of the good example about trade in services is that many tourist prefer to go switzerland for skiing and snowboarding and the season start from november and end in the may St.Mortiz offically open for skating, snowboarding etc and this resort is round about 145 year old and cause of many tourist to attract their for nice winter.In winter many people prefer to go there this is because of the services provided by the swizz government to the tourist. Today the St.Mortiz is well known all over the world. In 1986 St.Mortiz become a trademark for world's most famous/favourite holidays destination.This enhancing place was the craddle of winter sport
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