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Is international trade important Use examples to illustrate your answer - Essay Example

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Is international trade important Use examples to illustrate your answer

Commerce includes all those activities, which are connected with trade and auxiliaries to trade such as transport, warehousing, insurance and banking and finance.
Trade involves buying and selling of goods and its purpose is to bridge the gap between persons, i.e. the producers and the consumers can concentrate on their own occupations and at the same time buy goods to satisfy their consumption needs. The farmers can both enjoy each other's products with the help of traders. For example there are different types of cotton; jute, hides and skins are supplies to the producers of cotton textiles, gunny bags and shoes respectively. At the same time manufactured goods, which have been produced with the raw materials, are supplied to the consumers. Producers buy raw materials, machinery and equipment as well as stores and spare parts for machinery fro trading agencies and consumers buy practically all articles required for their daily use from traders.
Goods are produced on a large scale in anticipation of demand. The markets for products are now spread over the length and breadth of the country and even extended to countries across the international borders. Hence direct sale of goods by the producers to the consumers is not possible. Without the help of traders and merchants engaged in trade it would be impossible for the system of large-scale production to continue. The trader involved in the actual operation of purchasing goods from producers and selling them to consumers. Traders and consumers are interdependent.
Economic Feasibility:
It refers to the benefits or outcomes. We are deriving from the product as compared to the total cost we are spending for developing the product. If the benefits are more or less the same as the older system, then it is not feasible to develop the product. The development of the new product greatly enhances the accuracy of the system and cuts short the delay in the processing of the product.
Operational Feasibility:
It refers to the feasibility of the product to be operational. Some products may work very well at basic implementation but may fall in the real time environment. It includes the study of additional human resources required and their technical expertise.
Trade restrictions
Let's take the case of United States and its policies towards foreign trade. At the time of WWI and WWII the country's economy has slumped to a new low and according the living standards of the people. Unemployment was on high-rise and there was no perfect system to maintain law and order. There was chaos all the time. The post war era was the beginning of expansion in the trade sector. The benefits do not come that easily. Treating those who hurt by trade, equitably a difficult public policy issue. The important issues that were to deal with are controlling the rapid growth of trade deficit, high inflation rate and soaring prices of crude oil.
The post war era has seen a rapid expansion in trade and accordingly the economic and political structure has experienced steady and substantial growth. Gaining profits from trade depends on individual economic behaviour. Instead of building own automobiles, manufacturing own goods, producing own food, it is better to manufacture goods in which they have specialisation and trade them for other goods that are required. This thought made the US a leading exporting country in international trade. The most surprising thing is ...Show more

Summary

International trade is a way to achieve a higher standard of living and improving the per capita income and GDP growth for all trading nations. The post war (WWI and WWII) era has seen a rapid expansion of trade in the trading sections among all the trading nations…
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Is international trade important Use examples to illustrate your answer essay example
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