Definition of International Trade, Forms, And Reasons

Definition of International Trade, Forms, And Reasons

In this page you will read about the Definition of International Trade, Forms of international trade, And Reasons for international trade.

Definition of International Trade

International Trade Can be defined as the exchange, buying and selling of goods and services between two (2) or more countries.

Forms

There are two (2)  main forms of international trade which are as follow:

1. Bilateral

2. Multi lateral

1. Bilateral: This is the exchange of buying and selling of goods and services between two (2) country.

2. Multi lateral: This form of trade involve the exchange of buying and selling of goods and services among more than two (2) countries.

Reasons

1. In equitable distribution of natural resources:  The distribution of un-evently distribution of natural resources is one of the reason why international trade take place.

2. Differences in climatic condition:  Different agriculture products are produce in different areas as a result of climatic differences, Hence  the need for exchange.

3. Different in the level of industrialization:  this bring about dis parity in the level of protection which will necessitate exchange.

4. The Need to expand the local market: for Instance one of the reason why European come to west Africa was to look for more market for endless goods produce during industrial revelation.

5. Different in skill and technical known how: these leed to differences in producing a product and need for the exchange.

Also read:Meaning of Service Industry, Examples, And Contribution of Service Industry in Nigerian Economy