Internal International Trade

The term trade is commonly understood to mean exchanges of goods wares or merchandise among people. It comprehends every species of exchange or dealing in goods. Trade may be internal or external. By internal or domestic trade are meant transactions taking place within the geographical boundaries of a nation or region. It is also known as intra regional or home trade external or international trade on the other hand is trade among different countries or trade across political frontiers international trade among different counters or trade across political frontiers international trade thus refers to the exchange of goods and services between one country or region and another. It is also sometimes known as intern regional or foreign trade. Briefly trade between one nation and another is called international trade and trade within the territory (political boundary) or a nation internal trade.

Evidently, international economics, which is the subject of the subject of the present book, is that branch or economics which is concerned with the exchange or goods and service between one country and another (foreign tide) as distinct form that trade which is carried on within the territory of a nation (domestic trade).

The economic reason or significance of international trade is similar to that of domestic trade in a country that is the mutual satisfaction of wants and attainment of well- being. In fact in the absence of international trade it would not have been possible for the world community to live a more happy and prosperous life with a high standard of living as we see today.

However, the fundamental basis of international trade lies in the fact that all countries cannot produce all things equally well or cheaply due to the unequal distribution of natural resources among them and impropertionality and imperfect substitutability of their available factors of production. Moreover for various socioeconomic and political reasons there is a lack of mobility of factors especially labour, as between one country and another. Thus different kinds of production which were most advantageous to them were undertaken by different countries and when the exchange of tees specialised goods which took place among them gave birth to international trade. Thus international trade insofar as it is result of geographical specialization fundamentally the same as trade between two regions within the same country (domestic trade). Each region within a country tends to specialize in the production of commodities for which it is best suited jute is manufactured in west Bengal and cotton textiles in Mumbai. The same principle of territorial division of labour is extended to the international level too.

The difference between the two types of trade, internal and international trade (or economics) is merely and application of general economics in the particular as a separate branch of economics? Are not the laws of domestic trade applicable to foreign trade? Can we not just extend the general theory of production value money etc. to the problem of international trade and transactions? Why there should be a need for a separate theory?

Services: - Internal, International Trade Homework | Internal, International Trade Homework Help | Internal, International Trade Homework Help Services | Live Internal, International Trade Homework Help | Internal, International Trade Homework Tutors | Online Internal, International Trade Homework Help | Internal, International Trade Tutors | Online Internal, International Trade Tutors | Internal, International Trade Homework Services | Internal, International Trade