Gone are the days when one had to wait for the N.R.I. relatives to get a pack of exotic chocolates, dresses with international labels or other foreign items. Now, one can simply go to a nearby mall and avail the same almost immediately. This is the effect of Globalization. It has made the procedure of trading between two countries much simpler. International Trade has effectively expanded the market reach of all small and big business houses.
What is International Trade?
The products offered to other countries are exports and the products purchased from other countries are imports. The process of importing and exporting is called International Trade. Important events across the globe significantly affect it. For example at the time of Gulf War, all the countries that were dependant on the OPEC countries to fulfill their requirement of petroleum had to pay more, which strained their financial position.
What Are The Effects Of International Trading?
- It expands the market reach for entrepreneurs
- It enables one to easily avail the commodities that are unavailable in home country
- Everything from foreign F.M.C.G. like food, soaps, toothpastes, etc. to industrial products like spare parts, machinery, etc. becomes easily accessible
- It increases the Foreign Direct Investment reserves of a country
International Trading provides a platform to a country for making the best use of their resources and exporting products to earn more revenue. It strengthens their economy. Moreover, if a country has scarcity of any product, it can easily be imported from other countries. Thus, it benefits the exporters, importers and consumers equally.
International Trade brings companies on a global platform. This makes them participate and constantly compete with the best in their industry. Consequently, the consumers are flooded with a variety of goods available at most competitive prices.