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Unit 1 Brief Introduction toInternational Trade Learning Objectives Define international trade Understand the reasons, benefits and some basic concepts of international trade Review briefly the main international trade policy and theory Contents Part Ⅰ International trade, also known as world trade, foreign trade, overseas trade, import and export trade, is the fair and deliberate exchange of goods and services across international or territories. It concerns trade operations of both import and export and includes the purchase and sale for both and invisible commodities. International trade involves activities across international boundaries and territories. However, it is in principle not different from domestic trade as the and the behavior of trade parties involved in a trade does not differ fundamentally depending on whether trade is across a border or not. Part Ⅰ The main difference is that international trade is typically more costly and complicated than domestic trade, and special problems may arise, which are not normally experienced when trading at home. The reason is that trade between foreign countries will have the such as differences in language, culture, currency, technical specification for goods and requirements as well as tariff barriers such as custom duties, exchange restrictions, fixed quotas and other tariff barriers, and complexity in documentations, transportation and insurance. Part Ⅱ As is discussed, international trade is typically more costly and complicated than domestic trade. Then why do modern countries trade with one another? It’s because more and more businesses, consumers and governments realize that their lives are increasingly affected, not just by what goes on in their own town, state or country, but also by what is happening around the world. Increasing international trade plays an important role in the
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