International trade

 International Trade?
 Is the exchange of goods and services between countries. This work gives rise to a world economy, it lead to prices affect and are affected by global events. Political are changing in Asia.
 Ex:If you buy a shoes in US, then it'll cost you like 50$. But same shoes you buy in Viet Nam may cost about 70-90$ because of the following problem.

International trade have lots of problems and difficulties.

1. Distance:

 Long distance between different countries, it is difficult to close trade contacts between traders. Buyers and sellers rarely meet one another.

There is a great time lag between placement of order and receipt of goods from foreign countries. Distance creates higher costs of transportation and greater risks.

2. Different languages:

 Languages are spoken and written in different countries. Price lists and catalogues are different in foreign languages. Advertisements and correspondence have to be done in other languages.

A trader wishing to buy or sell goods abroad must know the foreign language or employ somebody who knows that language.

3. Transportation and communication:

Dispatch and receipt of goods takes a longer time and involves considerable expenses. During the war and natural calamities, transpor­tation of goods becomes even more difficult. Similarly, the costs of sending or receiving informa­tion are very high.

4. Risk in transit:

Foreign trade involves much greater risk than home trade. Goods have to be transported over long distances and they are exposed to perils of the sea. Many of these risks can be covered through marine insurance but increases the cost of goods.

5. Lack of information about foreign businessmen:

Lost of direct and close relationship between buyers and sellers. Special steps are necessary to verify the creditworthiness of foreign buyers. It is difficult to obtain reliable information concerning the financial position and business standing of the foreign traders. Therefore, credit risk is high.

6. Import and export restrictions:

Every country charges customs duties on imports to protect its home industries. Similarly, tariff rates are put on exports of raw materials. Importers and exporters have to face tariff restrictions.

They are required to fulfil several customs formalities and rules. Foreign trade policy, procedures, rules and regulations differ from country to country and keep on changing from time to time.

7. Documentation:

Both exporters and importers have to prepare some documents which include expenditure of time and money.

8. Study of foreign markets:

 Foreign market has its own characteristics. It has require­ments, customs, weights and measures, marketing methods, etc., of its own. An extensive study of foreign markets is essential for success in foreign trade. It is very difficult to collect accurate and up to date information about foreign markets.

9. Problems in payments:

Every country have their own amount of money and their own way to payment.Remittance of money for payments in foreign trade involves much time and expense. Due to wide time gap between dispatch of goods and receipt of payment, there is greater risk of bad debts.

10. Frequent market changes:

It is difficult to anticipate changes in demand and supply conditions abroad. Prices in international markets may change frequently. Such changes are due to entry of new competitors, changes in buyers' preferences, changes in import duties and freight rates, fluctuations in exchange rates, etc.

Benefits of International Trade

_Create work and jobs in every country and new business.
_New company.
_Choise of goods and product.

International Trade Issues

U.S. citizens are linked to the international problem of child labor in part through our trade relationships with other countries. It is well-documented that some of the mined, manufactured, and agricultural goods produced for export to the United States involve the use of child laborers or forced labor. In 2010, the U.S. Department of Labor issued a report entitledList of Goods Produced by Child Labor or Forced Labor which lists 128 products from 70 countries that have been documented to involved the use of child labor or forced labor.

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