Human society is unthinkable without international or world trade. It is historically the first form of economic ties between different countries. In this regard, international trade is trade settlements and fairs, the activities of which have been known since time immemorial.
Currently, it plays an equally important role. The modern definition says that international trade is a special type of commodity-money relations based on the export of raw materials or finished products.
It is based on the division of labor. Simply put, countries produce a certain product, which they enter into cooperation and exchange. Therefore, we can safely say that at present, international trade is an interchange of national economies of the world’s countries with goods and services.
Factors Stimulating the Progress of the International Division of Labor :
- socio-geographical: the difference in topographic position, number and mental characteristics of the population;
- climatic: differences in the provision of water and forest resources, as well as minerals.
Developed technologies and changes in economic indicators also play an important role. All this contributes to a strong relationship between national economies.
Production is growing slower than
international trade. This is confirmed by the data of the
World Trade Organization. According to the results of her research, for every 10% increase in production, there is a 16% increase in world trade.
Organization of international trade is impossible without such a thing as “foreign trade”. It is divided into: trade in finished products, equipment, raw materials and services.
In a narrow sense, international trade is the total turnover of developed countries, developing countries, the circulation of countries of any continent or region.
As practice shows, the country's interest in world trade is due to the following advantages:
- introduction to world achievements;
- rational use of available resources;
- the ability to rebuild the structure of the economy as soon as possible;
- meeting the needs of the population.
There are various types of international trade:
- trade in goods and services;
- exchange trading;
- trade fairs;
- auctions;
- countertrade;
- trade in compensation transactions.
If everything is very clear with goods and services , then the rest of the points make you think, so for a complete understanding of the picture, let's consider this issue in more detail.
So, a trading exchange is an association of sellers, intermediaries and buyers. Such unions contribute to improving trade, accelerating trade and free pricing.
Fairs are trades held periodically in a designated place. They are regional, international and local. In this period of time, trade fairs have become widespread, where you can order your favorite product.
Auctions are a form of sale of goods previously put up for review. Such transactions take place at the appointed time in a strictly defined place. A distinctive feature of auctions is the limited liability for the quality of the goods.
Countertrade takes place in several directions: barter and countertrade.
Barter is a price - agreed exchange of goods. Such transactions take place without the participation of cash.
The last type of international trade is a compensation transaction, which differs from barter in that it involves not one, but several goods.
Thus, world trade is carried out on several types of transactions, which are developing and improving every minute.