INTERNATIONAL TRADE

CRUZ JR, FERNANDO TAGUMPAY H.

BERNARDINO, ARVIN ROI S.A
What is International Trade?

Refers to exchange of goods and services

between countries. In simple words, It
means the export and import of goods and
services.
Types of International Trade
• Export Trade
• Import trade
• Entrepot Trade
Export Trade
Means selling goods and services
out of the country.
Example:

Ecuador shipping bananas to

other countries for sale.
Import Trade
Refers to the goods and services
flowing in the country
Example:
a trader bringing artwork from India
to sell at Vietnam Market which is the
trader's home country market.
 Entrepot Trade
Means importing goods and exporting
it to anotheer country after adding some
value on it.
Example:
a certain Indian company may import
rubber from Thailand and then exports
it to a Japanese Company.
 Advantages and
Disadvantages of
International Trade
Advantages
•Comparative Advantages
•Economies of Scale, competition
•Transfer of technologies
•More job creation
Disadvantages
•Over-dependence
•Unfair to new companies
•A threat to National Security
•Pressure on Natural Resources
Needs of International Trade
• Price
• Quality
• Availability
• Demand
Price
If Foreign countries can produce
goods and services more cheaply,
then it may be benificial.
Quality
If the companies abroad can offer
good and services with superior
quality
Affordability
If its impossible to produce
a product domestically.
Demand
If demand of product or services is
more in country than what it can
domestically produce, then it goes for
import.
END