The Definition Of World Trade

by arifsadik

 

 

Commercium Latin Trade is an activity that involves the purchase or sale of goods for processing, resale or use. Is a transaction that involves changing one thing for another, usually money. International, meanwhile, is something belonging or relating to two or more countries or who has transcended the borders of a nation.

Trade international Estes two definitions allow us to refer to the notion of international trade, which is the trade between two countries. In this sense, an exporter delivers products and / or services to an importing country.

International trade is often used synonymously with world trade or foreign trade. This method implies the existence of commercial open economies (ie, willing to allow the entry of goods from other countries).

The process of international trade is boosted from the second half of the twentieth century, with the advancement of telecommunications and transportation. The capitalist system, already established around the world after the fall of the Union of Soviet Socialist Republics (USSR), growth based on free trade and the elimination of borders and barriers.

There are several economic theories that explain the importance and necessity of international trade. Adam Smith (1723-1790) claimed that the goods were produced in countries with lower production costs and from there exported to the world, what is called absolute advantage. David Ricardo (1772-1823), meanwhile, appealed to comparative advantage, emphasizing the relative costs arising from the comparison between countries.