define foreign trade
Trade with other countries
http://www.answers.com/topic/foreign-trade
check your business studies textbook
Foreign trade, also known as international trade or global trade, refers to the exchange of goods and services between countries. It involves the import and export of goods and services across international borders, where countries engage in economic interactions to enhance their competitiveness and meet the needs of their populations.
Foreign trade is a significant component of a country's economy, allowing nations to specialize in the production of goods or services they have a comparative advantage in. This specialization leads to increased efficiency and productivity, which can contribute to economic growth and development.
To understand more in-depth about foreign trade, you can follow these steps:
1. Start with the basics: Begin by understanding the concept of trade, which is the exchange of goods and services between two or more parties.
2. Explore trade theories: Familiarize yourself with theories such as comparative advantage, absolute advantage, and opportunity cost that explain why countries engage in trade and how they benefit from it.
3. Study trade agreements: Gain knowledge about bilateral and multilateral trade agreements, such as free trade agreements (FTAs), customs unions, and regional trade agreements, which impact the terms and conditions of foreign trade.
4. Examine trade barriers: Learn about trade barriers like tariffs, quotas, and non-tariff barriers, which countries may impose to protect domestic industries or regulate the flow of goods and services across borders.
5. Access trade data: Use official sources such as national statistical agencies, international organizations like the World Trade Organization (WTO), and databases like the United Nations Comtrade to access trade data and statistics. This information can provide insights into trade volumes, patterns, and trends.
6. Explore international trading systems: Understand how international trading systems, such as the General Agreement on Tariffs and Trade (GATT) and its successor, the WTO, enable negotiations, settle disputes, and promote fair practices in global trade.
7. Analyze the impact of foreign trade: Consider the economic, social, and political implications of foreign trade, including effects on employment, income distribution, and economic growth.
By following these steps, you will gain a comprehensive understanding of foreign trade and its significance in the global economy.