International Trade definition and features

International Trade definition and features

INTERNATIONAL TRADE

• International trade is the exchange of commodities and services beyond the geographical boundaries of nations.

•The core of international economic relationship comprises the exchange of goods and services between different independent or sovereign states or countries in the world.

• According to Ohlin, "Regions and nations specialize and trade with each other for the same reasons that individuals specialize and trade."

"International trade is only a special case of inter regional trade.

SALIENT FEATURES OF INTERNATIONAL TRADE.

• Immobility of factors of production.

• Differences in natural resources.

• Different National policies.

• Differences in the geographical and political factors.

Differences in monetary units.

• Degree of competition.