International Trade, Asia, Latin America Or From Any Other...

1. ABOUT INTERNATIONAL TRADE. How is it possible that I can go to a supermarket and buy products from Africa, Asia, Latin America or from any other country? Today, this is possible thanks to international trade. International trade is a term referred to the exchange of goods and services across international borders or, in other words, between different nations. In almost every country, international trade represents a large share of the gross domestic product (GDP). Global trade allows people to experience or consume goods and services that are not offered in their home countries. Foreign products like food, wine, clothes, currencies, stocks, and so on can be found on the international market. Not only products are traded across the†¦show more content†¦Countries have been trading goods and services for at least, more than nine thousand years despite the numerous issues that trading all over the world had by then. Nowadays, international trade is recognised as one of the pillars in which global economy is based on. International trade is directly responsible for most of the evolution and the welfare of the modern and industrialised world in which we live. Both goods and services are imported because of several reasons. Foreign goods can be better, cheaper, easier to access or just more attractive than local products. Normally the need of importing is motivated because there are no locally produced goods that can act as an alternative product. This makes imports essential for the growth of a country. A clear example of this urge of foreign produced goods is Japan. They lack of oil reserves and are forced to import the 100% of the oil that they consume. The international trade brought specialisation and labour division alongside with economic development for trading countries as noted by Adam Smith â€Å"Men are much more likely to discover easier methods when the whole attention of their mind is directed towards that single object that when it is dissipated among a great variety of things† (The Wealth of Nations, 1776). 1. ADVANTAGES AND DISADVANTAGES OF INTERNATIONAL TRADE. International trade has side effects on the economic