Chapter 1
Chapter 1
Chapter 1
of International Trade
International trade: Exchange of goods and
services across national boundaries
services
High per capita incomes
price of imports
Exchange rates
Government restrictions
Availability of foreign currency (in the case of
developing countries)
Volume of trade: The volume of world
exports in 2012 was over four times what it
was in 1990 and approached 19 trillion U.S
dollars. Some of the major factors for this
increase include increased incomes due to the
expanding middle class in many countries,
trade liberalization and new technologies that
assist in the physical integration of world
markets.
Larger countries (in terms of population)
tend to depend less on trade than small ones.