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Need For International Trading and Marketing

Definition of International Trade:

International trade is exchange of capital, goods, and services across international borders or territories. It refers to exports of goods and services by a firm to a foreign-based buyer (importer)In most countries, it represents a significant share of gross domestic product (GDP).
Need for International Trade:

There is always a need for international trade because the countries have different capabilities and they specialize in producing different things. To compensate for what they do not produce, they have to involve in trade with other countries. For example not all the countries have oil resources, the rest of the countries import oil from the oil producers. Most of the oil producers on the other hand import finished goods because they do not produce enough. Similar example is that of agricultural products

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Risks involved in international trade: There are several risks involved in international trade. The risks can be categorized in two groups: • • Political risks Economic risks

The most evident Benefit of international trade are summarized below:

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International trade has reduced inequalities and facilitated growth in economy of different countries. Due to international trade, a new trend has been observed. Countries, all over the world are making all efforts to adhere to monetary policies, which have zero inflation, thereby reducing restrictions in trade worldwide. After conducting research on international trade, it was found out that if a particular nation reduces its tariffs, it is enough to boost long term growth of the other economies as well. However, if there is unanimous reductions in tariffs, the growth is even faster. It was also observed that , majority of the countries, adopted methods of ensuring growth on a long term basis. These countries, manifested a trend, where the levels of income were also high.

and distribution—are likely to differ dramatically in the countries in which a firm elects to market. BENEFITS OF INTERNATIONAL MARKETING :  Enhances the domestic competitiveness . manage. and coordinate a marketing plan in an unfamiliar and often unstable foreign environment.Definition of international Marketing: International marketing occurs when a business directs its products and services toward consumers in more than one country. Furthermore. advertising. The key to successful international marketing is the ability to adapt. While the overall concept of marketing is the same worldwide. many elements outside the control of managers. the environment within which the marketing plan is implemented can be drastically different. both at home and abroad. are likely to have a large impact on business decisions. Common marketing concerns—such as input costs.  Takes advantage of international trade technology  Increase sales and profits  Extend sales potential of the existing products  Maintain cost competitiveness in your domestic market  Enhance potential for expansion of your business  Gains a global market share  Reduce dependence on existing markets  Stabilize seasonal market fluctuations . price.