What is Global Trade?

Overview of global trade, why it's important, and how it works.

1. Global Trade

2. Agenda
What is global trade?What is global trade?
Why is trade important?Why is trade important?
Why should I trade?Why should I trade?
How trade worksHow trade works
Jobs in international tradeJobs in international trade

3. What is global trade?
Global trade, also known as international trade, is Global trade, also known as international trade, is
simply the exchange of goods and services across simply the exchange of goods and services across
international boundaries.international boundaries.
Import Export

4. When did it begin?
Records from the 19th century BC Records from the 19th century BC
attest to the existence of an attest to the existence of an
Assyrian merchant colony at Assyrian merchant colony at
Kanesh in Cappadocia.Kanesh in Cappadocia.
The domestication of camels The domestication of camels
allowed Arabian nomads to control allowed Arabian nomads to control
long distance trade in spices and long distance trade in spices and
silk from the Far East.silk from the Far East.

5. Why is trade important?
Availability of products worldwide (competitive advantage)Availability of products worldwide (competitive advantage)
Reduce vulnerability and dependence on the domestic Reduce vulnerability and dependence on the domestic
market (economy, seasonal fluctuations, weather, etc.)market (economy, seasonal fluctuations, weather, etc.)
Increase in product quality because of competition and Increase in product quality because of competition and
higher quality standards required in other countrieshigher quality standards required in other countries
Fair trade raises working conditionsFair trade raises working conditions
Contributes to the economyContributes to the economy

6. competitive advantage

7. contributes to the economy

8. Why should I trade?
Enhance sales and profits through market expansion. Enhance sales and profits through market expansion.
•Exporting is profitable. In fact, 60% of small companies Exporting is profitable. In fact, 60% of small companies
that engage in exporting derive 20% of their annual that engage in exporting derive 20% of their annual
earnings from exports. earnings from exports.
Reduce cost of products by importing less expensive Reduce cost of products by importing less expensive
raw materials and through foreign manufacturing. raw materials and through foreign manufacturing.
Learn new ideas and management techniques.Learn new ideas and management techniques.

9. Your store in the U.S.A. selling locally and/or nationally

10. 320,760,000 people
Potential customers when selling locally and/or nationally

11. 7,200,000,000 people
Potential customers when selling internationally

13. How trade works
Raw materials
Manufacture
Your product
Market research,
regulations, consulting,
etc.
Buyers
Prepare
packaging
Customs
Shipping
Product
sold abroad
Export/import

14. Jobs in international trade

15. Something to think about…
““Nations that trade don’t go to Nations that trade don’t go to
war with each other”war with each other”
-Guy Tozzoli, WTCA -Guy Tozzoli, WTCA

16. Lynn R. HíjarLynn R. Híjar
iBiz247 International Business CenteriBiz247 International Business Center
www.iBiz247.comwww.iBiz247.com
Happy trading!