Essay On International Trade

International trade and finance
International trade can be attributed to interplay of various key variables. Thus speaking, it is important to have a glimpse of the basics in this realm in order to bolster the understanding in this sphere. Such attributes can have a very important role in understanding international trade. In this regard, it is important to explore such attributes including surplus imports and their effects, the comparative advantages, exchange rate risks, and trade barriers in the international trade and finance.
Surplus imports refer to excess of imports entering into a particular country, for instance the US. With these imports, various effects occur to the consumers and the exporters. The sales have reduced costs based on the notion of the competition attributed to abundance of supply. This still implies that the manufacturing companies for the commodities suffer from losses. On the other hand, the consumer benefits positively because the commodities are available at reduced prices (Reuvid & Sherlock, 2011). Thus saying, it is important to strike a balance so that key players in international trade can benefit from the exercise.
Comparative advantage is the ability of a party to make a product at a lower opportunity and marginal cost than another, most preferably a rival. In the international trade the role of comparative advantage is enormous because it can make a country appear as an economic giant or not.
Another term worth understanding is the exchange risk. Exchange rate is the price of one country's currency in terms of another country's money. This threat usually has effects on organizations that export and/or import, but it can also affect stockholders from creating international funds. For example,...

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...the US in the long run (Bergsten, 2006). China acts as a final assembling point for most products from Asian countries, and restriction can specifically affect those relations. Thus saying, the deficit between the US and China has to last for the good of this relations.

Conclusion
With the help of highly advanced transportation, modern production techniques, rapid industrialization and the increasing facilities of outsourcing of trade and services, the international trade organization is rising and increasing very fast in the world. The international trade accounts for a good share of a country’s gross domestic product. It is furthermore one of most significant foundations of income for the developed and developing countries. Because of many benefits in the international trade almost all the countries in the world are actively involved in the international trade.