Exchange Across International Borders

Exchange Across International Borders

• International trade involves the exchange of capital, goods, and services across international borders or territories.
• International trade represents a significant share of gross domestic product (GDP) in most countries.
• International trade is a complex process influenced by factors such as currency, government policies, economy, judicial system, laws, and markets.
• International economic organizations such as the World Trade Organization facilitate and promote international trade.
• Statistical services of intergovernmental and supranational organizations and governmental statistical agencies publish official statistics on international trade.
• Almost every kind of product can be found in the international market, including food, clothes, spare parts, oil, jewellery, wine, stocks, currencies, and water.
• Advanced technology, globalization, industrialization, outsourcing, and multinational corporations have major impacts on international trade systems.
• Carrying out trade at an international level is typically more costly than domestic trade due to additional costs such as explicit tariffs and non-tariff barriers.
• International trade is mostly restricted to trade in goods and services, and only to a lesser extent to trade in capital, labor, or other factors of production.
• There are several models that seek to explain the factors behind international trade, the welfare consequences of trade, and the pattern of trade.
• The top traded commodities by value for exports include crude oil, cars, refined petroleum, integrated circuits, and gold.
• International trade has both advantages and disadvantages for local production, including environmental impact, labor rights, and regional differences.