Facets of international trading in today’s world
                     Facets of international trading in today’s world
Why is international trade necessary?
When a country is unable to produce enough resources to meet the demands of its 
population, the supply of goods and services is maintained by purchasing those from 
other countries. Similarly, when the production of a resource in a country is in surplus, or 
the demand for a product is higher on foreign lands, it can be sold to other countries to 
generate revenue. Trade of commodities through purchase or import and sale or export – 
involves two different currencies of two different countries and therefore is regulated by 
the rules and laws of the countries concerned.
The fundamental processes involved in foreign trade are the same as those involved in 
domestic trade except that the borders in question are international, and trading is more 
expensive due to long-distance shipping. Other factors that add to the cost are –
1. tariffs such as import tax,
2. time costs due to transport delays at borders,
3. costs associated with differences in cultures, languages, and legal systems
What influences international trade?
The more the surplus in production of goods and services, and the better are the facilities of 
international transport, the better would be the revenue generated from foreign trade. However, 
trade transactions are not simple. There are constraints in industrialization, advancement in 
transportation, and globalization due to both lacks of resources and man and environmental 
imbalances. 
Hence, although a better global trade system would enhance the economic development of a 
country, we cannot ignore the immediate and long-term detrimental effects of advancements in 
human civilization.
The global political, cultural, and economic landscape is molded by multiple and transient 
short and long-term consumer trends, and therefore, trade is affected accordingly. 
Businesses continue to influence economies and vice versa. Local industries and 
businesses constantly push the frontiers of economic growth and technology, which in 
turn keeps changing the local and global scenario. 
Traditional modes of operation face competition from upgraded tools and methods due 
to the consistent developments in science and technology. Increasing global trade is 
crucial for maintaining globalization. However, one should consider and enact sustainable 
choices and substitutes to effectively combat climate change and other harmful effects of 
industrialization in the future.
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