International Trade Overview

The challenges associated with exchanging goods directly for other goods, such as lack of a common standard of value and double coincidence of wants.

Rare items with high intrinsic value used as currency before coins and paper money (e.g., flint, shells, cattle).

"Salary" comes from the Latin word "salarium," meaning payment in salt.

Trade in ancient times was often limited to local markets due to the risks and difficulty of transporting goods over long distances.

An ancient trade route connecting Rome and China, facilitating the exchange of silk, wool, and precious metals.

Advertisements for the sale of slaves were common in the past, often separating families and leading to significant human suffering.

Demand for raw materials like grains, meat, and wool increased after the Industrial Revolution, but their value relative to manufactured goods decreased.

In ancient times, most people's resources went toward basic needs (food, clothing), leaving luxury items for the wealthy.

Records the value of goods and services imported and exported by a country.

When a country imports more than it exports.

When a country exports more than it imports.

Trade between two countries.

Selling a product in another country at a lower price than in the home country (not due to cost differences).

Exchange of goods and services between countries.

Free trade can be disadvantageous to developing countries with unbalanced trade agreements.

A negative balance of trade can mean a country spends more than its earnings through exports, potentially depleting financial reserves.

European trade expanded in the 12th and 13th centuries due to improvements in ocean-going vessels and trade with Asia and the Americas.

Starting in the 15th century, European powers established colonies, leading to the exchange of exotic goods and the slave trade.

Industrialized nations became major customers, with regions producing raw materials losing prominence in the late 19th century.

The slave trade, a significant aspect of international trade, was gradually outlawed beginning in 1792.

Specialization and division of labor in production boost the global economy through international trade.

International trade arises from countries specializing in producing goods most efficiently.

Countries implemented trade taxes and restrictions during WWI and WWII.

Organizations like the WTO helped reduce trade barriers after World War II.

Trade involving multiple countries, where each country can trade with many others and grant 'Most Favored Nation' (MFN) status to select partners.

The removal of barriers like tariffs to allow goods and services from all countries to compete freely in a domestic market.

Obstacles to international trade, such as tariffs (taxes on imports), quotas (limits on imported quantities), and subsidies (government payments to domestic producers).

Groups of countries that create free trade zones within their region, promoting trade among members and reducing barriers to trade.

An international organization responsible for regulating international trade, aiming to promote free and fair trade between nations.

Increased competition, lower prices for consumers, greater variety of products available, economic growth, and job creation.

Potential for trade barriers between different blocs, difficulty in standardizing regulations, and risks of trade imbalances.

Industrial Ports specialize in handling bulk cargo like grain, sugar, ore, oil, chemicals, and similar materials.

Commercial Ports handle general cargo, packaged products, manufactured goods, and passenger traffic.

Oil Ports focus on processing and shipping oil.

Ports of Call are stops on a shipping route, often for refueling, supplies, or passenger exchange.

Out Ports are deep-water ports built away from the main port, used for large ships that can't enter the main port.

Athens and its out port Piraeus in Greece are a classic example of a main port and its out port.

Tanker Ports are specialized oil ports that handle large tankers.

Refinery Ports are oil ports where crude oil is processed into usable fuels.

As of December 2016, 164 countries were members of the World Trade Organization (WTO).

India is one of the founding members of the World Trade Organization (WTO).

Ports serve as gateways for international trade, providing facilities for docking, loading, unloading, and storing cargo. They maintain navigable channels, arrange tugs and barges, and provide labor and managerial services.

The importance of a port is judged by the size of cargo and the number of ships handled. The quantity of cargo reflects the level of development in its surrounding area.

These ports handle large volumes of diverse cargo, including bulk and general goods. Many of the world's major ports fall into this category.

Located away from the sea, these ports are connected to the sea by rivers or canals. They are accessible to flat-bottomed ships or barges.

Businesses should consider environmental and health concerns in their operations to avoid negative impacts in the long run.

Prioritizing only profits without considering environmental and health concerns can lead to serious consequences in the future.