5 Questions
What factors influence trade when it takes place between two or more states?
Currency, government policies, economy, judicial system, laws, and markets
What do international economic organizations such as the World Trade Organization work towards?
Facilitation and growth of international trade
What is the significance of international trade in most countries?
It represents a significant share of gross domestic product (GDP)
What is the term for a product transferred or sold from a party in one country to a party in another country?
Export from the originating country, and an import to the receiving country
What do statistical services of intergovernmental and supranational organizations and governmental statistical agencies publish official statistics on?
International trade
Study Notes
Factors Influencing Trade
- Distance and transportation costs between countries affect trade
- Cultural and language differences between countries can impact trade
- Economic systems, such as capitalism or socialism, influence trade policies
- Political relationships and diplomatic ties between countries affect trade
- Tariffs, quotas, and other trade barriers can restrict or promote trade
International Economic Organizations
- Organizations like the World Trade Organization (WTO) work towards promoting free trade
- They aim to reduce trade barriers and promote economic cooperation
- They provide a framework for countries to negotiate and agree on trade rules
Significance of International Trade
- International trade plays a crucial role in the economy of most countries
- It allows countries to specialize in producing goods and services in which they have a comparative advantage
- It increases economic growth, creates jobs, and provides access to a wider range of goods and services
International Trade Terminology
- The term "export" refers to a product transferred or sold from a party in one country to a party in another country
- The term "import" refers to a product transferred or sold from a party in another country to a party in one's own country
International Trade Statistics
- Statistical services of intergovernmental and supranational organizations and governmental statistical agencies publish official statistics on international trade
- These statistics include data on trade balances, exports, imports, and trade volumes
Test your knowledge of international trade with this quiz! Explore the history, significance, and impact of international trade on the world economy. Learn about the exchange of goods, services, and capital across borders while uncovering the role of international trade in the GDP of various countries.
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