Foreign trade, also known as International Trade or Global Trade, is the interchange of goods, services, and money across global borders and territories. Usually, all the countries are reliant on each other, as no one can manufacture all the goods and services independently. Foreign trade also grants every country to make the best use of its most abundant resources.
Today trades are not just constrained to the boundaries of their countries; they are pacing to the global standards at a faster rate. The benefits one gets while joining International trade are like becoming a steady learner and working in a dynamic environment. Moreover, you can face hurdles that enable you to make a real impact on the business you work for. International trade produces jobs at all levels, be they in production, shipping or business management.
The objective of foreign trade is to increase production and to raise the quality of living of the people. Foreign Trade aids citizens of one country to consume and enjoy the possession of goods produced in some other country.
Following are the scopes of foreign trade:
Making Use of Abundant Natural Resources
Some nations are naturally plentiful in natural resources. Without a deal, these countries cannot benefit from the natural endowments of raw materials.
Every nation should specialize in those resources where they have a relatively cheaper opportunity cost. Even though if countries can manufacture goods at a relatively lower opportunity cost, it does not mean that they manufacture everything.
Economies of Scale and Specialization
The critical thing in foreign trade is to pursue a specialization, and this allows organizations to gain advantage from economies of scales which sideline most other factors.
Service Sector Trade
The increase of service sector economy has led to more invisible trades, such as Insurance, Banking and finance, IT sector and many others.
With each passing day, businesses are expanding internationally and the requirement for qualified professionals to work in the foreign trade business keeps growing. UPES, Dehradun is one institution which offers a bachelors program in foreign trade. The program aims at developing knowledge of the fundamentals of international trade and its significance in today’s world.
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