International trade refers to the exchange of goods and services between countries. For example, Lesotho sells wool and mohair to other countries and imports goods like sugar, coffee and clothes. International trade can provide economic benefits such as foreign exchange, job creation, and access to new technologies and markets. However, it also faces challenges like high transportation costs, perishable goods spoiling, and trade barriers imposed by countries. These challenges can be overcome through fair trade agreements and maintaining a balanced trade between imports and exports.

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.

16. LIST OF REFERENCES
https://study.com/academy/lesson/customs-union-definition-theory-
quiz.html