SUMMARIZED NOTES OF INTERNATIONAL TRADE FOR CSEE

COMMERCE

SUMMARIZED TOPIC FORM THREE: INTERNATIONAL TRADE

INTERNATIONAL TRADE

This refers to the selling of goods and services among countries. International trade may be import, export and entreport trade.

 

REASONS FOR INTERNATIONAL TRADE.

·         Difference in natural resources.

·         Difference in human skills.

·         Unequal distribution of capital and technology.

·         Gain from trade.

 

ADVANTAGES OF INTERNATIONAL TRADE.

1.       Possession of goods a country cannot produce.

2.       Technological transfer.

3.       Amplification of competition.

4.       Reduce scarcity of goods.

5.       Widens economic scale.

6.       Important in tackling calamities.

7.       Improves national understanding.

 

DISADVANTAGES OF INTERNATIONAL TRADE.

1.       Decline in domestic industries.

2.       Importation of harmful products.

3.       Dependency.

4.       Problems of unequal exchange.

5.       Defects of over specialization.

6.       Fall of domestic currencies.

 

 

PROBLEMS FACED BY DEVELOPING COUNTRIES IN INTERNATIONAL TRADE.

1.       Declining terms of trade.

2.       Dependency.

3.       Protectionism policies of foreign goods.

4.       Severe external debt due to deficit in balance of payment.

 

TO BE CONTINUED……………………..

 

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