makes

International trade

the world go round

We’ve all heard of the phrase

“love makes the world go

round”, right?

We’ve all heard of the phrase

“love makes the world go

round”, right?

This may be true for some things, however when it comes to

international trade, the only place where the ‘sugar, spice and

everything nice’ exists is in a tangible manner.

International trade has

been around for

centuries and can be

defined as the exchange

of goods or services

across international

borders.

International trade has

been around for

centuries and can be

defined as the exchange

of goods or services

across international

borders.

So, why is it important and how does it make the world go round?

International trade is the economic interaction between different countries, driven by enterprises

and/or individuals that either export or import goods or services, and has a direct impact on the

global economy.

It allows for lower production costs from one region over another, highly specialised

industries to market and sell their products, regions benefitting from a surplus of natural

resources, and ultimately allowing the consumer to source products from different

regions/cultures.

Due to the import and export movement of the goods or services supplied and

consumed from one country/region to another, this creates a push and pull effect,

giving an impression that it is driving the world.

In another instance, not being able to consume or source goods from highly

specialised organisations, certain regions could not function quite as effectively and

efficiently; thus again giving an impression that trade is directly related to

the speed at which the world runs.

Due to the import and export movement of the goods or services supplied and

consumed from one country/region to another, this creates a push and pull effect,

giving an impression that it is driving the world.

Imagine…A world where Steve Job’s products or Sir Richard Branson’s services could not be shared. Where the transfer of knowledge through books etc. could not be passed to other regions.Would our world still be run as efficiently or effectively as it is to this day?

International trade. It makes our world go round.

THANK YOU!

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