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- 1. INTERNATIONAL TRADE BY MOOKHO KHASU FROM LESOTHO COLLEGE OF EDUCATION
- 2. INTERNATIONAL TRADE Refers to exchange or buying and selling of goods and services to and or from outside the country. For example, Lesotho sells wool and mohair outside the countries. Lesotho also buys things like sugar, coffee and clothes from outside the country. In terms of services, we use software products and data analytics from outside the country.
- 3. EXAMPLE OF INTERNATIONAL TRADE AGREEMENT In international trade, the African Growth and Opportunity Act (AGOA) helps to open up markets and create new opportunities for trade between African countries and the U.S.
- 4. ANOTHER EXAMPLE OF TRADE AGREEMENT Southern African Customs Union (SACU) It was found in 1910. Its headquarters are in Namibia in Windhoek. There are five (5) members of SACU.
- 5. MEMBERS OF SACU Botswana Swaziland Lesotho Namibia South Africa
- 6. BENEFITS OF CUSTOM UNIONS A customs union allows goods or products to move freely between countries without incurring border customs duties. Therefore, exchanging goods and services among members is enhanced by eliminating trade barriers that reduce importation costs, making foreign products more competitive than domestic ones. Customs union can promote cooperation and integration between member countries, leading to economic and political stability.
- 7. BENEFITS OF SELLING OUTSIDE THE COUNTRY Foreign exchange from countries. To attract foreign investors. It can help to diversify the economy ,reducing the risk of relying on a single market. It creates jobs, as businesses will need to expand to meet the demand for their products in other markets. It can help a country to increase its competitiveness and to gain access to new technology and know-how.
- 8. BENEFITS OF BUYING FROM OUTSIDE THE COUNTRY People enjoy products of high quality. It can help to access new products that may not be available domestically. It can provide access to lower-priced goods and services, which can help to reduce the cost of living. To form relationship and foster cooperation with other countries. It leads to greater competition, therefore prices are going to be lower.
- 9. CHALLENGES OF INTERNATIONAL TRADE High costs like transport and tax Perishable goods may get spoiled on the way. The delay of deliveries. Damaged goods are not easily replaced or returned. Importation of harmful goods.
- 10. HOW TO OVERCOME A CHALLENGE OF INTERNATIONAL TRADE By fair trade; it is the movement whose goal is to help produce of the 3rd world countries to achieve better trading conditions. A producer should have a say in their goods and services. Seller will be determined of the price, quality and quantity.
- 11. HOW TO OVERCOME A CHALLENGE OF INTERNATIONAL TRADE (CONT……) Balance of trade; Is the difference between amount paid for imports and amount paid for exports.
- 12. TRADE BARRIERS It refers to restriction that have been made to both imports and exports. THERE ARE TWO INTERNATIONAL TRADE BARRIERS Tariff barriers Non-tariff barriers.
- 13. REASONS FOR HEAVY TAX Promote domestic product of goods. To protect local producers from competition. Protect consumers from exploitation. It protect the country from harmful products.
- 14. EXAMPLE OF NON-TARIFF BARRIERS Quotas; Refers to physical limits on the quantity of goods or commodities that can be imported. Embargoes; Total ban on the import or export of certain goods and services in a country. Permits and licenses; This allows traders to trade in a country. Currency manipulations; This is a policy which is used by governments and central banks to lower the value of their currency.
- 15. RECOMMENDATIONS I would recommend teachers to teach international trade at school. This would encourage students to create their own businesses due to lack of job facing our country. As they are taught about international trade, they will not be scammed easily. This would also help them to avoid human trafficking.