Major advantages of international trade- Ari Afilalo
International trade is more or less similar to domestic trade. The only difference is that international trade crosses different geographical boundaries. International trading is a secure way to boost the GDP of a nation quickly. However, international trading is no longer a novelty. Countries have been exchanging goods and services ever since we identified different ways to move across the borders. But then, the manner in which international trading is being executed these days is highly lucrative and complex than it had ever been. Globalization, industrialization, and formation of numerous multi-national companies have drastically transformed the way different nations interact and do business with each other.
Benefits of international trade
International trade is also quite significant for most of us today. How about a scenario where you can only have access to goods and services that are produced locally? That will be so restraining and lackluster. Without products and services coming in from other nations, we would have been so confined and, as a matter of fact, so much against the growth principle of mankind.
International trading includes heavy costs since governments tend to impose various types of costs on top of the actual price of a product or service coming in from a different company. Such additional costs may include time costs, tariffs and numerous other type of charges involved when exchanging goods and services from a nation having a different set of rules, culture, system and language.
China at the forefront of international trade
One of the most dominating force on the international trading front is China where labor is available in abundance and at really cheap prices. Numerous labor-intensive products manufactured in the US and the majority of European nations are assembled in China since the country has access to cheap labor. In this manner, the country originally manufacturing the product can cut out a lot of time, money and effort. In addition, such international trading activities helps provide good income opportunities to the people of China, thence facilitating better living for them.
While international trade helps a nation raise diverse income opportunities for the local individuals, exporting or importing anything in a surplus amount can actually hurt the local scene. During recession times, countries face tremendous amount of pressure to draw the government into making amendments in international trade laws to safeguard local industries.
The role of World Trade Organization
While each country has certain laws and bylaws in place through which it manages its international trade operations, the entire trading scene on the global level is executed and monitored through the World Trade Organization.
The WTO makes sure their is mutually rewarding and peaceful business atmosphere. Trading between two nations can often cause unnecessary rifts between the two parties involved and in case the issues are left unsettled it can lead to severe problems on the international level. In case such issues are voiced or detected, the WTO takes hold of the problem through debates, general talks to identify various possible ways to resolve the international trading problems. In most cases, the WTO draws the parties involved in the issue into signing a bilateral or multilateral agreement.
The major advantage of this international trade goes to the small- and mid-sized industries that have great products and services to offer. And therefore, you can surely ride high on success in international trading front if you hit the right areas.
About the author
Ari Afilalo is an expert at international trade. A professor of international trade, Ari is highly popular aongst his students. He has also authored a revolutionary book on international trade that can actually act as a Bible for anyone looking to get detailed insights into international trading.