Essay Title: 

International Trade

April 3, 2016 | Author: | Posted in business, mathematics and economics

Outline

Introduction

The current volume of international trade reflects the increasing importance of the global market

Companies can no longer rely on local markets alone . Globalization requires that companies expand globally to include the various markets in the world

History of international trade

In the past , companies turned away from dealing with international business due to certain factors

The taxes that are imposed on importation meant that bringing in products were more expensive

The tariff rates served as added expense for the companies

Certain countries prohibited the [banner_entry_middle]

entry of foreign goods and services in their local market

However , with the establishment of the World Trade Organization international trade slowly became liberalized

Member countries were able to establish trade agreements among themselves which eased the process of trading the products of each country

Tariff rates were removed and created free trade which lowered the prices on imported and foreign goods

Prevalence of International Trade Today

Today , the world has become one free market where companies can offer there products and services to most countries

Different factors , both political and technological , have furthered the progress of international trade today

The establishment of the WTO as the regulating and governing body of international trade is the vital factor that has helped in developing free trade among various nations

Advancements in technology has facilitated communication between people in different countries . Various forms of communication have made it easier for companies and their international clients to discuss various matters

Technology has also bridged the gap between cultures . People from various countries now get to understand the cultures of other nations through certain forms of media such as the television and most importantly , the internet

Conclusion

Companies should explore exporting their products in to remain competitive in the market

The entry of foreign products into the local market creates greater competition and thus , companies need to expand their market by including those in other countries

This is the most important way by which a business can thrive , expand and continuously grow

Research

Today ‘s market has expanded greatly . Globalization has allowed the formation of an international market where various goods and services may be offered , sold , and traded . The growth of international trade is best evidenced by the fact that the volume of the international trade of goods and services grew to 7 trillion in 2000 . More importantly , such figure is continuously growing at an even faster rate

Success in today ‘s business entails success not just in the local market but in the global market as well . However , in the past , international trade was not encouraged . Various barriers existed that turned companies away from trading in other countries . One important consideration in trading internationally was the tax that was given to imported goods Governments used to charge higher taxes on imported goods . Moreover tariff rates were also a vital factor that prevented the growth of international trade . Basically , trading internationally was simply too expensive and a big risk for many companies . Another reason… [banner_entry_footer]

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