Nowadays, you walk through any supermarket and find brazilian bananas, colombian coffee, and a bottle of South African wine, this is a result of the impact of international trade.
Even though everyone thinks they know the importance and meaning of international trade, most people think it’s just for big companies or for powerful countries. International trade allows countries to expand their markets and access goods and services that otherwise may not have been available domestically. As a result of international trade, the market is more competitive. This ultimately results in more competitive pricing and brings a cheaper product home to the consumer.
Not only the importance of cheaper prices, but also the impact on the global economy and having alliances with the countries to increase International trade that results in increased efficiency, and also allows countries to participate in a global economy, encouraging the opportunity for foreign Direct Investment (FDI). In theory, economies can thus grow more efficiently and become competitive economic participants more easily.
So, to conclude, what is the importance of international trade and commercial relations? Infinite reasons, but mostly because it can benefit all, because everything nowadays is part of the international relations between countries.
March 8, 2022