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11 - Intro To International Trade

International trade is the exchange of capital, goods, and services across international borders or territories. It is the exchange of goods and services among nations of the world In order to be able to perform in a foreign or international market it is necessary to know the international trading system. International trading system are the trade restrictions and organizations working on the promotion of trade or international trade in goods.

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331 views21 pages

11 - Intro To International Trade

International trade is the exchange of capital, goods, and services across international borders or territories. It is the exchange of goods and services among nations of the world In order to be able to perform in a foreign or international market it is necessary to know the international trading system. International trading system are the trade restrictions and organizations working on the promotion of trade or international trade in goods.

Uploaded by

Tayaban Van Gih
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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INTERNATIONAL BUSINESS and

Trade

Professor - Dr. Johnlee L. Botor


AEC 304 Summer SY 2022
PPT 11 - Introduction to
International Business and
Trade (International Trade)

Sources:
https://www.slideshare.net/atifghayas/internati
onal-business-67787886
https://slideplayer.com/slide/5776498/
https://www.slideshare.net/vibhoragarwal9693
/ppt-on-international-trade-or-business
Introduction to International Trade

What is Trade?
• Trade involves transfer or exchange of
goods and services for money or money
worth.
• Trade is a basic economic concept
involving the buying and selling of goods
and services, with compensation paid by a
buyer to seller, or the exchange of goods
or services between parties.
Introduction to International Trade

• Trade can take place within an economy


between producers and consumers.
• The manufacturers or producers produces
the goods, then moves to the wholesaler,
then to retailer and finally to the ultimate
consumer.
Introduction to International Trade
Types of Trade
Introduction to International Trade

Internal/Home/Domestic Trade
• Is conducted within the political and
geographical boundaries of a country
• It can be at a local level, provincial,
regional or national level
Example: Trade carried on among traders
of Benguet, Manila, Visayas, Cagayan De
Oro, etc. is called home trade.
Introduction to International Trade
Wholesale trade
• Involves buying in large quantities from
producers or manufacturers and selling in
lots to retailers for resale to consumers
Retail trade
• Involves buying in smaller lots from the
wholesalers and selling in very small
quantities to the consumers for personal
use
Introduction to International Trade

International Trade
• Every country, regardless of the
technological advantages will still find a
product that can be placed on a foreign
market.
• International trade is an extension of the
production, exchange and consumption,
which are basic elements of life.
Introduction to International Trade

International Trade
• The notion of international trade refers to
trade of goods and services between
countries.
• International trade is an exchange of
goods and services between individuals
and companies from different countries.
Introduction to International Trade

International Trade
• International trade is an economic activity
that covers trade in goods and services
abroad.
• It represents the total exchange of material
goods between countries.
• Producers and consumers included in
international trade are form different
countries.
Introduction to International Trade

International Trade
• Narrowly, foreign trade only covers trade
in goods between the economic entities
from different countries and is subject to
exchange occurring only to those goods
that cross state borders or customs lines
of one or more countries.
Introduction to International Trade

International Trade
• In broad terms, foreign trade, despite the
international exchange of goods includes
exchange of services, the turnover of
capital, movement of people (tourism) and
the transmission of news and information
(telecommunication market).
Introduction to International Trade

Significance and Role of International


Trade
• International trade are reflected in the fact
that with its help of foreign trade that
countries supplying goods and services
that cannot alone produce or unable to
produce sufficient quantities to meet the
needs of consumers country.
Introduction to International Trade

Significance and Role of International


Trade
• International trade allows countries to
expand markets for both goods and
services that otherwise may not have been
available to it.
• It is for this reason why an American
consumer can pick up between a
Japanese, German, or American car.
Introduction to International Trade

Significance and Role of International


Trade
• International trade stimulates the division
of labor, reduces production costs,
creates, more competition between buyers
and producers, reduces the possibilities of
creating monopolies and rapid price
changes and facilitate the movement of
capital.
Introduction to International Trade

Significance and Role of International


Trade
• Without international trade, nations would
be limited to the goods and services
produced within their own borders.
Introduction to International Trade

Types of International Trade


• Export Trade – is a trade of goods or
services that are produced in one country
and sold into another country. The seller of
such goods and services is an exporter;
the foreign buyer is the importer.
Introduction to International Trade
Types of International Trade
• Import Trade – is the process of
importing (buying) goods or services from
another country.
• A country import good or service in the
following situations: they can’t
manufacture/produce the goods; they
have a deficit of raw material or resources
to produce or provide the good or service.
Introduction to International Trade

Types of International Trade


• Entrepot Trade – An entrepot or
transshipment is a port, or trading post
where merchandise may be imported,
stored or traded, usually to be exported
again.
• Entrepot trade occurs when a country
buys goods with the sole aim of selling
them to other countries.
Introduction to International Trade

Types of International Trade


• The best example for Entrepot Trade is
Singapore. Singapore buys goods with the
sole aim of selling them again to other
countries.
End of
Lesson

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