Geographic positioning of the countries in the globe causes production of agricultural products and mineral related product to vary depending on the country. Countries located in the equatorial highlands in America and Africa highly depend on agriculture while countries located in the Arabian deserts produce oil products. The difference in production between the countries results in the need for trade (Morrissey 699). The common character that signifies third world nations comprise of agriculture dependent nations. The developed nations deal with service industry and trade in machines. The trade between developed and undeveloped nation enables the developed nations to obtain crucial machines and services that they do not produce. The developed nations purchase agricultural products in their raw form which are later processed and resold in the country or to other countries. There is a significant difference in the commodities traded in the international market. Raw agricultural produce fetches the country less income compared to finished goods and services sold by the developed nations. The big gap between the commodities traded is reflected in the balance of trade. ... B2B refers to the sale of commodities between two business entities. This channel of distribution attracts low profit but is convenient for the seller. B2C channel of distribution involves businesses having outlets in the countries they conduct trade. This channel of distribution attracts high profit but requires the involvement of the businessman compared to B2B. Most developed nation prefers the B2C to B2B channel of distribution which explains the surplus in trade (van de Klundert 208). Free trade refers to an agreement between two countries to ensure that trade regulations are abolished with regards to the legal products traded. Free trade has been adopted by some countries where the developed nations have set up export processing zones to attract investors. The country benefits from employment of citizens in the export processing areas as tax restrictions are reduced in the export processing zones. Terms of trade refer to another international trade term which refers to the rate of exchange of an import for an export. Exchange rate refers to the valuation of currency depending on the economic growth of a country. International trade affects the budget of the country and has to be monitored to avoid economic slumps (Baffes 427). The gap between the developed nations and the developing nations needs to be bridged to ensure stability in the global economy. Some economists blame the immense gap to the free trade between the two dissimilar economies. The difference in trade has caused the developing nations to lose out in the trade as their commodities retail for lower prices and the export cost more.
A paper "International business: Imports and Exports" claims that international trade results in increased employment and a developed economy around the globe. Comparison of economies before the spread of international trade shows a significant difference in the economic growth rates. …
Political differences or cultural differences are not providing any obstacles in front of international companies in diversifying their business to overseas countries. It should be noted that plenty of American companies are currently operating in China. Same way plenty of Chinese companies are operating in America at present.
The following are some of the current trends in ocean transportation: Supply Chain Recently the IAS added three new modules to its Dispatch Manager product in a bid to automate the container haulage work order process from creation to proof delivery. The additional modules are meant to enable cargo owners, ocean carriers and motor to connect effectively.
From an economic outlook, currency valuations are decisive factors to consider in trading. Depending on a country, the relative value of the currency of Euro, Yen, or Dollar may fluctuate more than other currencies. In such instances, one may regard it as a strong or a weak currency.
Inflation has a significant impact on output rendering significant costs for economy, consumers and producers. Similarly, inflation makes productive investment to drop since profitability plunges, speculative investment increases, which possess a negative impact on employment, output, and income.
Before laying down the formal plan of action, it is necessary to understand the elements that will be involved in the strategy that has been developed later in the paper, from the perspective of the AP
This process then motivates increased purchasing by international vendors and consumers. This process has a varying impact on United States businesses. While one would assume that such processes would have a beneficial impact, this is not always the case. One concern is the impact of import costs.
In such instances, one may regard it as a strong or a weak currency. A strong currency is one that can be converted into high quantities of other currencies while a weak currency is one that cannot buy much from a
Major ethnic groups in Costa Rica include the White, Mestizo, Asian, immigrants, Mulatto, and the Black among others (Jacqueline, 2011).
With a population of approximately 4.7 million people, Costa Rica holds 5% of the world’s
Management of corporations focused more on corporate governance and formulation of policies free of government interference. The focus on the traditional industry also changed. China’s economy was traditionally dependent on agriculture, but
Primarily, such differences occur between the rural or traditional and urban or modern sections of the economy. Kenya, builds its economy while entirely depending on a single entity. The strongest entity in Kenya is domestic consumption. Domestic consumption in Kenya
2 pages (500 words)Essay
Got a tricky question? Receive an answer from students like you!Try us!
Let us find you another Research Paper on topic International Business: Imports and Exports for FREE!