Types of International Trade | Free Economic Blogs
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Types of International Trade
Foreign Trade Definition
According to Wasserman and Hultman, “International Trade consists of transactions between residents of different countries”.
According to Anatol Marad, “International trade is a trade between nations”.
According to Eugeworth, “International trade means trade between nations”.
Meaning of Foreign Trade
Foreign Trade is trade between the different countries of the world. It is called as International Trade or External Trade.
International trade is referred to as the exchange or trade of goods and services between different nations. This kind of trade contributes and increases the world economy. The most commonly traded commodities are television sets, clothes, machinery, capital goods, food, and raw material, etc.,
International trade has increased exceptionally that includes services such as foreign transportation, travel and tourism, banking, warehousing, communication, advertising, and distribution and advertising. Other equally important developments are the increase in foreign investments and production of foreign goods and services in an international country. This foreign investments and production will help companies to come closer to their international customers and therefore serve them with goods and services at a very low rate.
- Microeconomic Definition | Historical Review of Microeconomics
- Scope Or Nature of Microeconomics
- Features of Microeconomics
- Importance of Microeconomics
Types of International Trade
1) Import Trade
Import trade refers to purchase of goods and services by one country from another country or inflow of goods and services from a foreign country to home country. For example, India imports petroleum from Iraq, Kuwait, Saudi Arabia, etc.
2) Export Trade
Export trade refers to the sale of goods by one country to another country or outflow of goods from one country to a foreign country. For example, India exports tea, rice, jute to China, Hong Kong, Singapore etc.
3) Entrepot Trade
Entrepot trade refers to the purchase of goods and services from one country and then selling them to another country after some processing operations. For example, Japan imports raw materials required to make electronic goods like, radio, washing machines, television etc. from England, Germany, France etc. and sells them to various countries in the world after processing them.
