The humans of stone-age also know something about trade. They are provided food items for their services. There was no currency back then; they used to trade goods with goods or services. Things have changed quite a lot from those days. Internet has also contributed to the advancement of trade by providing everything online.
Trade is always beneficial for both parties. It is major driver in the success of the world. International goods trading have helped countries fulfill their needs as well as need of other countries. Exchanging goods and services in different parts of the world is known as international trade.
The two main aspects of international trade are exports and imports. Let us discuss these aspects in little detail.
Imports, as the name suggest is a process of buying products and services from other countries to meet the requirements of the country. The main reason behind importing is that the demand cannot be met by the products produced by the country or that product is imported that cannot by produced by a country due to unfavorable conditions.
Export is like selling products of your country to different countries to earn valuable foreign exchange. Export is an indicator to judge a country’s economy. When a country has surplus amount of good left after meeting the requirements of their country, it is exported to other countries. Geographical location, environment and atmosphere and prices of raw materials play an important role in exports.
Advantages of Goods Trade
The biggest advantage of trade is that consumer will benefit from competitive prices and competition among different companies. Monopoly of a single giant cannot be established with trade. It opens many new doors for job opportunity and helps in boosting country’s economy. Countries can earn valuable foreign exchange that can be very useful. New technology increases productivity and increases profits. Another benefit of trade is that you can get any product as a consumer which you have not heard about.
Disadvantages of Goods Trade
Some people can manipulate this supply and consumers have to pay a hefty price for it. Prices can fluctuate due to political and environmental issues. Safe delivery of exported and imported goods is a major issue in case of any environmental hazards and political unrest. Sometimes, welfare of the people of the country is not considered when exporting goods.