Meaning and importance of International trade

1. • Meaning
• Types
• Importance
Dr. Geetanjali Diwani

2. What is International Trade?
The buying and selling of goods and services across national borders
is known as international trade.
International trade involves different currencies of different countries
and is regulated by laws, rules and regulations of the concerned
countries. Thus, International trade is more complex.
Dr. Geetanjali Diwani

3. Definitions of International Trade
According to Wasserman and Haltman, “International
trade consists of transaction between residents of different
countries”.
According to Anatol Marad, “International trade is a trade
between nations”.
Dr. Geetanjali Diwani

4. Why International Trade?
Expansion of market
Lower production costs
Specialization
Lack or surplus of natural resources and consumer tastes
Globalization
Economic development
Dr. Geetanjali Diwani

5. Types of International Trade
1. Export refers to the sale of goods by
one country to another country or
outflow of goods from home country to
foreign country.
2. Import refers to purchase of goods by
one country from another country or inflow
of goods and services from foreign country
to home country.
3. Entrepot trade is also known as Re-
export. It refers to purchase of goods from
one country and then selling them to
another country after some processing
operations.
Dr. Geetanjali Diwani

6. Need and Importance of
International Trade
Dr. Geetanjali Diwani

7. Need and Importance of International Trade
Dr. Geetanjali Diwani

8. Need and Importance of Foreign Trade
Dr. Geetanjali Diwani
Optimum
allocation and
utilization of
resources

9. Need and Importance of Foreign Trade
Equality of prices
Dr. Geetanjali Diwani

10. Need and Importance of Foreign Trade
Availability of
multiple choices
Dr. Geetanjali Diwani

11. Need and Importance of Foreign Trade
Ensures quality and
standard goods
Dr. Geetanjali Diwani

12. Need and Importance of Foreign Trade
Raises standard of living
of the people
Dr. Geetanjali Diwani

13. Need and Importance of Foreign Trade
Generate employment
opportunities
Dr. Geetanjali Diwani

14. Need and Importance of Foreign Trade
Facilitate economic
development
Dr. Geetanjali Diwani

15. Need and Importance of Foreign Trade
Assistance during
natural calamities
Dr. Geetanjali Diwani

16. Need and Importance of Foreign Trade
Maintains balance of
payment position
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17. Need and Importance of Foreign Trade
Brings reputation and
helps earn goodwill
Dr. Geetanjali Diwani

18. Need and Importance of Foreign Trade
Promotes World Peace
Dr. Geetanjali Diwani

19. Dr. Geetanjali Diwani