International Trade Flashcards
What is international trade?
A two way exchange of goods and services across national borders
What is the economic problem?
No country is so well endowed with resources that it does not have to rely on other countries
What are the categories of international trade complexities?
Different Currencies
Different Cost Structures
Social Differences
Technical Differences
Different National Policies
Multi-national Corporations
What is China’s trade strategy?
China’s national trading strategy, involves state-backed export industries and substantial global infrastructure investment
China aligns itself with the economic development needs of its trading partners
Advantages of international trade?
Consumer Benefits: Wider variety of goods at lower prices, increasing purchasing power.
Enhanced Competition: Imports drive domestic producers to improve quality and efficiency.
Expanded Markets: Access to larger markets helps domestic exporters grow and reduce costs.
Economic Growth: Access to capital goods boosts productivity, growth, and development.
Disadvantages of international trade?
Industry Displacement: Uncompetitive industries may shut down.
Job Losses: Workers may lose jobs and need retraining.
