International+Trade



InternationalTrade

====International trade remains an ancient activity related to barter objects or work for another thing that the person needs. At present, it refers to the exchange material resources and services with other(s) nation(s) -is essential knows that the country has to be productive enough to satisfy its own population before to starting with exportation-.====

A nation can raise its economics, scale up step by step to be better than before and try to keep a higher level life for all its inhabitants - in subject of technology, education, feeding, communication, etc-. It can also supply internally trading the results of the enterprises established in its own territory.

==== Import from another country has as advantage acquires goods and services that the nation needs but it isn't able to produce by itself. International trade opens the doors to obtain anything in the market, but is first, is crucial negotiate with the other part. Here is one detail could be a limitation of international trade: labour and capital are easier to exchange around the world, so is better do that into the place and not outside the country's border. ====

====Laws, languages, cultures, and currency have to be in mind at the time to make a foreign contract, obviously the cost of the product fluctuates depending of the international reserve that a country has. These are some things the dealer doesn't have to learn if he or she wants to trade in just one country. However, is important that a trader will be informed about international economics' news. ====

 In Venezuela the principal product to export is oil and its products, it forms the basis of its economy.
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=WHY do nations trade? =

====In first place, a country has particular characteristics that distinguish than others and these help itself to produce one specific good, so the nation needs trade to obtain different products it can't do. For that reason, one country could have an advantage by specialization in one product and also it will gain a surplus to use it for import nation needs from other country and in this way, have a major variety of goods and services. ====

====Some nations have protectionism methods to avoid foreign competitions not allows a development of domestic industries. It could restrict country’s economy and close it to global economy. It cause too an unfair action for people that live in that territory, they have to pay more for one product with less quality than one imported. Moreover, companies could expand in the market establishing in other country and catch buyers from it. ====

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====In that case is needed financial duties that could be tariffs and quotas. Tariffs are charges apply to the weight of ONE product, while quotas are refers to the amount of a particular type of good to be imported without any extra payment. Both growth prices in imported goods and it makes the habitants prefer buy some other product produce in the same country where they live, in order to avoid the extra increment that implies those trade barriers.====

====Other protectionism mesures are administrative practices that can beneffited domestic trade but puts some difficulties in imports -eg. people not recive at time the product sold- and exchange controls, that are about limitations in obtain foreign currency. In Venezuela are several techniques to protect its trade such as general sales taxes and improved taxes administration ([|Venezuela - Economic development]).====

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