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INTERNATIONAL TRADE can be understood as follows
By the international trade, we signify the exchange of goods and services between different countries. For any individual country, trade is very much significant for number of reasons: the trade balance drives the BOPs and intensely influences foreign exchange reserves and the exchange rate; trade helps to determine the overall production and consumption of the possibilities in the economy (in the static and dynamic contexts both, as we shall see below); net exports are an important component of the aggregate demand, and hence the income and employment; and so on.
Interesting Facts about the World Trade are given below:
The Four interesting facts about the world trade perspective are:
i. The value of the world trade has increased 20 fold over the 1930-2000 periods
ii. On an average, the contribution of the country’s exports to its GDP has doubled from about 30% to 50% over the same period of time.
iii. Over the last 50 years, the share of world exports has changed from 50%-50% between the manufactured goods and primary products to 75%-25% in favour of the manufactures/producers.
iv. 50% of the world trade occurs between HICs, 14% occurs between LICs and the rest involves both HICs and LICs.
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