International trade

1. Mohammad Walid - 1810340 Email: mehmetvelitoglu98@gmail.com
What the international trading system?
It represents the exchange of goods and services between countries, meaning that there is an
exporting and importing country. The best thing about international trading is that it is an
optimal use of the world resources. International trade allows countries to specialize in the
production of materials whose manufacture is commensurate with the resources in those
countries. Countries benefit from international trade by producing goods that they can produce
at a lower cost, and by purchasing cheap goods that others produce. International trade
enables it to produce more goods and satisfy human desires in a better way, than if a country
tries to produce everything it needs within its own borders.
What are Exports and Imports?
Exports are the goods and services produced in one country, which are purchased by residents
of another country, and knowledge of the quality of these goods, services, or how to send them
is not considered an important issue, as these goods can be sent via shipping, or carried in the
luggage Personal on board, or send it via email. Importing is the process of moving products
from an external source into the state, and imports considered the most important in
international trade, and if the amount of imports exceeds the amount of exports in the country,
this means that it has a negative trade balance.
What are the pros and cons of International trade?
International trade pros are: enhancing the amount of payments of the exporting country,
where more exports than imports will lead to a surplus in the amount of payments and thus an
increase in the surplus and wealth of the country, one of the most important means to
strengthen relations between countries, increasing the welfare of societies, whether for the
exporting or importing country, as more choices are made of the goods and services available
to them, increasing the national income of the exporting country where increasing productivity
leads to increasing national income and thus achieving economic development, benefiting and
exchanging experiences between the two countries, whether material, human or technological
experiences and so on.
International trade cons are: increase in the balance of payments deficit of the importing
country, the possibility of imposing control by the exporting country on the importing country if
it has a competitive advantage, such as low prices for products, increasing the external burdens

2. (debts) on the importing country, reducing the productivity of the importing country and
consequently lower national income if citizens rely more on imported products than domestic
products, etc.
Restriction of international trade:
The concept of trade policies: We have already known the ideas of the mercantilists and their
emphasis on restricting foreign trade, especially the import side, because they believed that
foreign trade if it leads to a party getting profits, then this is at the expense of the other party,
other than Physiocrat or natural thinkers have paved the way for the emergence of new ideas
based on freedom in economic practices, including commercial activity, which benefits the two
trading parties. It is worth noting that foreign trade theories are based on the assumption of
complete competition, except for The reality is that markets are generally dominated by
imperfect competition, monopolistic competition, or oligopoly. Accordingly, all countries of the
world today are involved in various types of interference in commercial matters for the
following reasons:
1. International monetary relations: When a country’s balance of payments suffers from a
problem such as a deficit, it resorted to imposing some restrictions on foreign exchange to
address this imbalance, and this in itself is considered an indirect interference in foreign trade.
2. The government's desire to change the size and pattern of trade to achieve certain goals
(which may be social, political, health, etc.) through direct tools of its trade policy.
3. Trade restrictions, which are the result of the synthesis of imperfect competition markets
(i.e. monopolistic competition and oligopoly) as the most common markets in today's world.
Ongoing policies are defined as (the set of tools used by economic authorities to influence the
course of foreign trade in quantity and quality and to achieve specific goals), It is also known as
(a package of laws, procedures, and legislation that the state takes to regulate the relationship
between it and other countries of the world). It is noted that some trade policies lead to
expansion in foreign trade (such as export subsidies or the abolition of quotas) and others lead
to contraction of foreign trade (such as raising the tariff rate or ban policy).Types of trade
policies: Trade policies are divided into two main types:
First: The policy of commercial freedom (free trade), meaning the freedom of movement of
goods and services between countries of the world without restrictions.
Second: The trade protection policy (interference in foreign trade), that is, foreign trade is
subject to control and interference by economic authorities in quantity and quality.

3. However, it is noted that when talking about trade policies, the mind turns directly to the policy
of trade protection, just as trade policies differ from one country to another according to their
economic development and the level of composition of their productive and supplier activity,
when the economic activity is diversified and able to compete in global markets, the restrictions
of trade policy It tends to decline and leniency, either, if its production is still in the process of
growth, it needs to protect it from external competition, which necessitates the application of
strict trade policies.
First: the policy of commercial freedom
It is intended to unleash international trade without restrictions that hinder it, due to the
supremacy of the principles of free doctrine that prevailed during the nineteenth century, and
it was based on the principle of the relative expenses of Ricardo and the theses of physiocrats
(naturalists) that see that the private interest does not conflict with the public interest by the
laws Natural because the public interest is the horizontal sum of the private interests, and they
believed (1) that there are hidden hands (Hidden Hand) that automatically restore the state of
economic equilibrium without state interference (2) that free competition is capable of
achieving just price and that achieves profit Reasonable to the seller and in the same O Time is
the buyer's satisfaction. Britain continued to pursue this policy until the First World War, as its
economy after the war was hit by problems that required government intervention and
imposing trade protection to speed up the reconstruction of what was destroyed by the war.
Second: Trade protection policy
It is intended to "protect the producers of domestic goods and services from competition from
foreign producers, as well as to protect public goods. The most prominent reasons for this
policy:
Dividing international labor into raw materials producers (developing countries) and industrial
goods producers (developed countries) and depriving the former of opportunities for economic
growth and development.
• Calling (Kynz) to the state’s intervention to save the national economy from the effects of the
global crisis in the thirties of the twentieth century and achieve full use through various
economic policies, including trade protection policy.