Thursday, 23 May 2013

Five Things About International Trade Part Two

Continuing on from yesterday’s post we have another five things you need to know about international trade:

    Royale International Group
  1. Importing – This refers to the act of buying goods from another country. In developed countries such as America there are not many taxes or tariff placed on imported goods as importing is being encouraged.
  2. Exchange rates – This refers to when one currency is converted into another one.
  3. Export duties and limitations on exports – These limitations and duties are applied to reduce the amount that other countries are able to acquire through trade barriers and costs of transportation.
  4. Free trade –This refers to when goods, labour and capital are able to move between countries freely. There are many free trade agreements that have been set up and free trade is often promoted through international organisations. A problem with free trade is that the host country could lose jobs to others working in the developing countries.
  5. Risks – There are many risk factors ranging from economic to political. Economic risks are concerns about concession and unfavourable exchange rates while political risks include worries about import and export licenses.  Other risk factors include commercial and buyer country risks.

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