CHAPTER 1

ONAL TRADE
INTERNATI
 rnational
Inte
Trade???
Globalization
Outsourcing
Tariff
Import
Cost
Customs
Freight
Documents
Insurance
xc hange rate
E
Law
Pricing
Origin
iNTERNATIONAL TRADE

The branch of economics concerned

with the exchange of goods and
services with foreign countries

Purchase, sale or exchange of goods

and services across national borders
 THE GROWTH IN WORLD TRADE

About 15 percent of the world's output is traded

in international markets in a typical year.

while the importance of the international sector varies

enormously from country to country, the volume of
international trade increased substantially

As of 2021, world trade volume and value have expanded

4% and 6% respectively on average since 1995, when the
WTO was first established.
 World Trade Organization

Main goal:

to help producers of
Only global international
good and services,
organizations dealing
exporters and importers
with the rules of trade
conduct their business
between nations.
 BENEFITS OF WTO IN TRADING SYSTEM

The system helps promote peace

Disputes are handled constructively
It provides more choice of products and qualities
Trade raises incomes
Trade stimulates economic growth
The system encourages good government
 PRINCIPLES OF TRADING
SYSTEM
Non-
Transparency
discrimination

Safety
Valves

Binding and
enforceable Reciprocity
commitments
WORLD CUSTOMS ORGANIZATION

An international intergovernmental
organization that deals with Customs
procedures governing trade between
countries
 GLOBALIZATION COMPONENTS

KET UCTION ICES

MAR PROD SERV
??? ??? ???
 INTERNATIONAL TRADE PLAYERS

LOBAL
MNC SME BORN G
Business that has direct Small companies and Adopts a global
investments abroad in individuals becoming perspective and engages in
multiple countries increasingly active in international business from

international trade and or near its inception
investment