INTERNATIONAL

TRADING SYSTEM
International Trade refers
to the exchange of goods
and services from one
country to another.
IMPORTS FLOWS Exports Flows out
INTO A COUNTRY of a country and
FROM ABROAD
sold overseas
International trade
In INTERNATIONAL TRADE there are two types of
trade
• Visible and the Invisible Trade.

Visible Trade refers to the buying and selling of

goods
such as Solid, tangible thing – between countries
Ex. Coal, Gadgets, Vehicle

Invisible Trade refers to services

Ex. Tourism,Fees, and Software
Nation Trade internationally when there are not the
resources capacity to satisfy domestic needs and wants
domestically.
By developing and exploiting their domestic resources,
countries can produce a surplus. They may use this
surplus to buy goods they need from abroad. Ex through
international trade.

International Trade has Existed for more than 9000 years.

Long distance Trade- before the exestence of nation
states and national boarders- goes back much further. In
fact, it goes back to when pack animals and ships first
 WE IMPORT GOODS AND SERVICES FOR
SEVERAL REASONS:
* PRICE
- A FOREIGN COMPANY CAN PRODUCE SOMETHING MORE
CHEEPLY.
* QUALITY
- MAY BE SUPERIOR ABROAD.
* AVAILABILITY
-IT MIGHT NOT BE POSSIBLE TO PRODUCE THE ITEM
LOCALLY. THEREFORE , THE ONLY WAY IS THAT
COMSUMERS CAN BUY IT IS BUY IMPORTING IT.
DEMAND
-MIGHT BE GREATER THAN LOCAL SUPPLY. TO SATISFY THE
DIFFERENCE, IT IS NECESSARY TO IMPORT.
GELSAMAE S. MONTECINO