INTERNATIONAL TRADE

Hello!I AM DEBANJAN BHATTACHARYYA

I am here to give a presentation.

1.International trade

let’s start with the first set of slides

Topics we will come across

✘Defination Of International Trade

✘Importance of International Trade

✘Risks in International Trade✘WTO and its functions.✘Trade barriers and the types.

What is international trade ???

International trade is exchange of capital, goods, and services across international borders or territories. In most countries, it represents a significant share of gross domestic product (GDP). While international trade has been present throughout much of history (see Silk Road, Amber Road), its economic, social, and political importance has been on the rise in recent centuries.

(a) Without international trade, nations would be limited to the goods and services produced within their own borders.

Importance of International trade

(b) International trade is the backbone of our modern, commercial world, as producers in various nations try to profit from an expanded market, rather than be limited to selling within their own borders.

Risks in International Trade

✘ Buyer insolvency

✘ Credit risk (allowing the buyer to take possession of goods prior to payment);

✘ War and other uncontrollable events.

✘ Regulatory risk (e.g., a change in rules that prevents the transaction);

✘ Political risk (change in leadership interfering with transactions or prices); and

✘ In addition, international trade also faces the risk of unfavorable exchange rate movements

World Trde Organisation

.The World Trade Organization (WTO) establishes rules of trade among its member nations. To this end, the WTO also handles trade disputes, monitors trade policies, provides technical assistance for developing countries and cooperates with other international trade organizations.The WTO was created on January 1, 1995, and is headquartered in Geneva, Switzerland. The WTO replaced the General Agreement on Tariffs and Trade (GATT), which was created in 1948. GATT primarily regulated the trade of goods; the WTO regulates the trade of services and intellectual property as well. GATT still exists as the WTO's umbrella treaty for trade in goods.

WTO : WHAT THEY DO ??

(a)Dispute settlement

(b) Investment and Trade

(c) Trade Policy Reviews.

(d) Implementation and Monitoring Trade.

(e)Building Trade Capacity.

Limitations of International trade

✘ Rapid Depletion of Exhaustible Natural Resources

✘ Import of Harmful Goods

✘ Over Specialization:

✘ Danger of Starvation

✘  Language Diversity

Trade Barriers

✘ Trade barriers are government-induced restrictions on international trade.[1] The barriers can take many forms, including the following:

✘ Tariffs✘ Non-tariff barriers to trade

Subsidies2]

Trade restriction

Tariffs : Types Of Tariffs

✘ Import and export tariff : A tax levied on imports or exports of a company.

✘ Transit Tariffs : A tax levied on goods passing through the country.

✘ Specific Duty : A tariff based on the number of Items being imported.

✘ Compound Duty : A tariff consisting of both specific and ad valorem duty.

✘ Ad valorem : Based on a percentage of the value imported goods.

Non tariff Trade Barrier

QUOTAS SUBSIDIE

S

Import Quotas

A legal limit on the imported quantity of a good that is produced abroad and can be sold in domestic markets

Export Subsidies

✘Government payments made to domestic firms to encourage exports.

Reasons for Trade Barriers •

• Domestic Employment • Low foreign wages • Infant Industry • Unfair Trade • National Security

THE END