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Archive for the ‘Foreign Trade’ Category
International Trade
An old branch of economic science
International trade seems to be established from globalization, but it is not, only that communications have given a special impetus.
The study of the international economy as well as any branch of economic science, aims to analyze the process of making decisions based on scarce resources to provide satisfaction to society. This part of the economy examines how international transactions affect social welfare issues, income distribution, employment, and ways on how public policies can affect social welfare.
International trade is not a branch which arises from the globalization and think logically, but emerged even before the formation of nation-state. Civilizations transcendent in world history as the Egyptians, Greeks, Romans and Phoenicians gave particular importance to the passage of goods and services crossing borders, then to the first power set as states, for Spain, Portugal, Holland and England, was an element of national security. Read the rest of this entry »
What is included in the international market?
Every moment in the world, at this very second, we are making million of freight flows and financial transactions. Are the goods and services that transcend territorial boundaries through the importation or exportation, which is the trade balance.
Adam Smith and tariffs
The Scottish economist Adam Smith, through his work The Wealth of Nations states that States international trade should specialize in the production of goods and services where comparative advantage obtained, usually formed through the low cost of production. Given this theory, nations have implemented tariffs, taxes on the importation of goods to protect its domestic market, is a way to preserve the welfare of domestic enterprises and employment.
The trade in physical goods, international market base
International trade is made with 75% share of trade in manufactures produced mainly in Asia. In terms of primary goods, trade in food is 8.4% of the overall business activity within these goods, energy are the next commercial product, being even in the last 15 years an element of national security, so its marketing and pricing is increasingly complex, relying more on political, social and even cultural, that of supply and demand. Read the rest of this entry »