Tuesday, 5 February 2013

The definition of global trade

Commercial Latin Trade is an activity involving the purchase or sale of goods for processing, sale or use. This operation consists of changing one thing for another, usually money. International, time is something that belongs or relates to two or more countries or who have exceeded the limits of a nation.

Two definitions of this business allows us to refer to the concept of international trade, which is trade between the two countries. In this sense, gives the products or services exporters in the importing country.

International trade is often used as a synonym for trade or trade. This means that there are economies open trading (ie is willing to allow the entry of goods from other countries).

The process is driven by international trade since the second half of the 20th century, with the development of telecommunications and transport. The capitalist system, established in the world after the fall of the Union of Soviet Socialist Republics (USSR), growth based on free trade and the removal of barriers and borders.

There are several economic theories that explain the importance and necessity of international trade. Adam Smith (1723-1790) said that the products are manufactured in countries with low production costs, and then exported to the world, what is called absolute advantage. David Ricardo (1772-1823), meanwhile, called comparative advantages, highlighting the costs resulting from the comparison between countries.

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