International trade is exchange of capital, goods, and services across international borders or territories. In most countries, it represents a significant share of gross domestic product (GDP). While international trade has been present throughout much of history (see Silk Road, Amber Road), its economic, social, and political importance has been on the rise in recent centuries.
Industrialization, advanced transportation, globalization, multinational corporations, and outsourcing are all having a major impact on the international trade system. Increasing international trade is crucial to the continuance of globalization. Without international trade, nations would be limited to the goods ...view middle of the document...
This international environment consists of the sub-environments like the social, economic, etc.Therefore, the ‘risk analysis' of a country/political entity can be done under these sub-environments itself more efficiently rather than treating it separately. However, the maximum numbers of the leading authorities of the day have unfortunately treated separately the concept of the ‘risk analysis.'
International Marketing takes place within the framework of the international trading environment. If the reader is to have the skill necessary to develop international marketing strategies, some understanding of the parameters of the international trading environment in which they must operate is needed.
Since the Second World War, international trade has been one of the fastest growing areas of economic activity, multiplying at least 25 times since 1945. Growth is international trade consistently outperformed growth is world output over the past decade and has been the major stimulus in itself for world economic growth.
The reasons countries trade are many and varied; the two key explanations of international trade, however, are based on the theory of competitive advantage and international product life cycle.
The rationale for world trade is based largely upon the theory of comparative advantage that was developed mainly by the classical David Ricardo. At its simplest level, the theory suggests that trade between countries takes...