International Trade and World Output
International Trade and World Output
BUS230 Unit 2 Individual Project
Antoinette R. Hillary
AIU Online
September 11, 2010
Abstract
International trade is the exchange of products around the world through imports and exports that allows consumers around the world to obtain products and services that they cannot obtain in their own countries. If international trading between countries was to stop each country would suffer many losses which would be explained in this paper.
The Relation between Trade and World Output
International trade is the purchase or sale of goods and services between different countries around the world. Trading with other countries around the world is very important and most of the economies around the world have seen an increase over the past ten years. Not only does international trading help those looking to own their own business it also give people in countries around the world more options for goods and services. (Wild, Wild and Han, 2006).
The relation that is between trade and world output is the measure of the world’s output done yearly helps determine the amount of international trade. If there is a decrease in the world output it causes the international trade to decrease and if there is an increase with the world’s output the international trade also increases. In addition to this, if a country goes into a recession their capital loses it value therefore causing a rise in cost of imports. Regardless of the relations between world output and international trade world output does not grow as fast as international trade. (Motley, 2005).
International trade gives countries around the world the opportunity to increase their markets for their goods and services to countries that may not have them available to them in their own country which in turn reveal to consumers different goods and services not found in their own country. In international trading there are many products available around the world such as food,
BUS230 Unit 2 Individual Project
Antoinette R. Hillary
AIU Online
September 11, 2010
Abstract
International trade is the exchange of products around the world through imports and exports that allows consumers around the world to obtain products and services that they cannot obtain in their own countries. If international trading between countries was to stop each country would suffer many losses which would be explained in this paper.
The Relation between Trade and World Output
International trade is the purchase or sale of goods and services between different countries around the world. Trading with other countries around the world is very important and most of the economies around the world have seen an increase over the past ten years. Not only does international trading help those looking to own their own business it also give people in countries around the world more options for goods and services. (Wild, Wild and Han, 2006).
The relation that is between trade and world output is the measure of the world’s output done yearly helps determine the amount of international trade. If there is a decrease in the world output it causes the international trade to decrease and if there is an increase with the world’s output the international trade also increases. In addition to this, if a country goes into a recession their capital loses it value therefore causing a rise in cost of imports. Regardless of the relations between world output and international trade world output does not grow as fast as international trade. (Motley, 2005).
International trade gives countries around the world the opportunity to increase their markets for their goods and services to countries that may not have them available to them in their own country which in turn reveal to consumers different goods and services not found in their own country. In international trading there are many products available around the world such as food,
References: Heakal, R. (2010), What Is International Trading? Retrieved September 10, 2010 from http://www.investopedia.com/articles/03/112503.asp Motley, L. (2005). International Trade: What Is It Really? Retrieved September 10, 2010 from http://www.associatedcontent.com/article/ 15777/international_trade_what_is_it_really.html?cat=3 Wild, J.J., Wild, K.L., and Han, J.C.Y. (2006). International business: The challenges of globalization (3rd Ed.). Upper Saddle River, NJ: Prentice Hall Publishers