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International Trade: Exchange of Goods and Services across Borders

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International Trade: Exchange of Goods and Services across Borders
International trade could be define as the exchange of goods and services across the borders, it means that contrary to domestic trade, it includes the business with others countries and in this way, the play a role if they want to grow. Actually, the situation is more complex and plenty of theories have shown that international trade is not only conduct by the availability of resources owned by a location but even a country with a small quantity of assets could be competitive on the market. In a first part, we will demonstrate that the availability of resources is the condition of the competitiveness before showing in a second time that others factors have to be take into consideration. We will finish by a synthesis of the situation in order development of exports and imports. Each country in the world participates to the trade in function of its production, which is determinate by the resources available on the area. A resource could be a natural resource a human resource or a resource in term of process which competitiveness and the economic value of their areas. That is to say that as they have the resources, they have the control of the situation in To begin, the mercantilism introduced the idea of international trade by expressing the orientation that every nation should take in term of business. The fact is that a nation has to reduce its dependence on imports in order to keep the control on its proper allocation in goods. Nigel Grimwade (2000, pp.30) explains that in this way; a country should produce as more as it is possible relterm of trade and they can fix their conditions in order to be competitive as much as it is possible. However, if international business was only resume by this fact, it would say that except industrialized countries, no one country could be participate to the exchange of goods at a world level while countries in development have to to express a compromise between the two parts of the main statement.

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