INTERNATIONAL TRADE agri marketing.pptx.

International trade in agricultural marketing

1. INTERNATIONAL TRADE M GUNAL RA2171002010199

2. INTERNATIONAL TRADE International trade is  the exchange of capital, goods, and services across international borders or territories because there is a need or want of goods or services .It is next level of market For example : Drug Formulations, Biologicals. Petroleum Products.pearl , Precious, Semiprecious Stones CC BY

3. Goods and services are imported goods due to Low price
Superior quality
Lack of availability in the domestic market
Excessive demand
Low supply Goods are exported due to Higher value in the international market
International quality
Excess production in the domestic market
Increasing demand in the global market.

4. What Creates the Need for International Trade? International trade arises from the differences in certain areas of each nation. Typically, differences in technology, education, demand, government policies, labor laws, natural resources, wages, and financing opportunities spur international trade .

5. What Are Common Barriers to International Trade? The barriers to international trade are policies that governments implement to prevent international trade and protect domestic markets.  These include subsidies, tariffs, quotas, import and export licenses, and standardization.

6. FREE TRADE/OPEN ECONOMY Free trade refers to  policies that allow permit inexpensive imports and exports, without tariffs or other trade . In a free trade agreement,a group of countries agrees to lower their tariffs or other barriers to facilitate more exchanges with their trading partners. de barriers .

7. AUTARKY/CLOSED ECONOMY Autarky, an economic system of self-sufficiency and limited trade. A country is said to be in a complete state of autarky if it has a closed economy, which means that it does not engage in international trade with any other country. North Korea is also considered an example of autarky in today’s modern economy.

8. GOVERNMENT’S ROLE QUOTA Quantitative restrictions for export of goods ,because to satisfy domestic consumption. Quotas can also be used as a trade barrier, which is a regulation or policy that restricts international trade.

9. TARIFF A tariff is a tax that a government or supranational union imposes on imported or exported goods. Tariffs are a way for governments to collect revenue and protect domestic producers.