Topic > World trade - 1303

The traditional and most developed form of international relations is world trade. World trade accounts for approximately 80% of all international economic relations. International trade is a form of communication between producers from different countries that derives from the global division of labor and expresses mutual economic dependence. Wild, in his book, gives us a definition of world trade as: "The buying, selling, or exchanging of goods and services across national borders induced by sellers, buyers, and intermediaries in different countries." International trade includes the import and export of goods and services; The relationship between them is called the trade balance. According to David Ricardo's theory of international trade, each country should specialize in the production of goods in which it has a comparative advantage: lower labor and raw material costs. Ricardo claims that in this case all countries will benefit. This makes world trade necessary for all countries. International trade is fundamentally based on supply and demand. If the goods producers or service providers of one country are ready to meet the demand of the people of another country, trade between these countries can be carried out. If one of these factors, supply or demand, decreases world production, international trade will also decrease. Global production and trade are directly related to each other. In case of demand that affects supply we can take Lebanon as an example. Now, when the political situation is not stable and the country is at war, the purchasing power of the population has greatly decreased. Therefore, the demand for most products or services imported into the country previously has also decreased. This obviously affects international trade between Lebanon... half of the paper... cuts to international trade, they will no longer get products like cars, televisions, computers that are imported from the United Arab Emirates, there will be there will be shortages of food, like chocolate and dairy products, imported from Russia. There will be no supplies from Türkiye of clothes, shoes and other light industrial products. As we can see, international trade may contain dangers of trade dependence and other negative aspects, but it is a necessary element for every healthy economy in the world. Work CitedRicardo, D. "Beginning of Economic and Fiscal Policy." P 335Leontiev, V. Factor Proportions and the Structure of American Trade. Further theoretical and empirical analyses// The review of economics and statistics. 1956. ¹4. Ð.398-399.www.wikipedia.org Free online enyclpediawww.southafrica.info Definitive guide to South Africa.