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).

 

Trade In India


Trade and commerce have been the backbone of the Indian economy right from ancient times. Textiles and spices were the first products to be exported by India. The Indian trade scenario evolved gradually after the country’s independence in 1947. From the 1950s to the late 1980s, the country followed socialist policies, resulting in protectionism and heavy regulations on foreign companies conducting trade with India. India’s international trade situation improved when Prime Minister Rajiv Gandhi reformed the trade policies in the late 1980s.

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.