Category: Economics
Global Trade
Global trade is the exchange of raw materials, goods and services across the geographical borders of countries across the globe. Foreign trade got its first impetus from the industrial revolution in the late eighteenth and early nineteenth century. Rapid development in transportation facilities resulted in a surge in international trade in the twentieth century. Today, international trade has taken the form of outsourcing and multinational companies (companies that have a presence in several countries).
Regional Trade Blocks at a Glance
The concept of trade blocks is crucial in the context of international trade. Trade blocks are free trade zones designed to encourage trade activities across nations. The formation of trade blocks involves a number of agreements on tariff, trade and tax. The activities of trade blocks have huge importance in the economic and political scenarios of the contemporary world. Over the years trading blocks have played a major role in regulating the trend and pattern of international trade.
International trade deficit, Balance of trade deficit
Trade deficit is a situation when in an economy the imports are more than the exports. In such as case the economy is highly dependent on the import of goods. There are various factors for the trade deficit, such as the country’s inability to produce goods and services, as per the needs of the country, failure of agricultural produce due to natural calamities, etc.
