Foreign Trade: productive resources and limited factors

Foreign Trade: productive resources and limited factors

Foreign Trade: productive resources and limited factors

Foreign Trade: productive resources and limited factors

Transactions with the outside world stem from the fact that productive resources, both quantitatively and qualitatively, are distributed unevenly among countries.

It is practically impossible for a country to produce everything it needs or what it consumes, in the quantity and quality it needs, due to many limiting factors, such as:

  1. Technological Factors

Not all countries have the technological capability to produce or execute products and services that require knowledge, research and resources.

  1. Environmental Factors

Many countries have environmental limitations to plant, produce or run products and services, which forces them to seek these products and services abroad.

  1. Physical Space

Some countries do not have physical (land) space for extensive crops, or facilities that require geographic resources, and therefore need to purchase or run these products and services in other countries.

  1. Economic and Financial Factors

The lack of economic and financial resources, or the high internal financial cost, causes some countries to seek abroad, products and services, linked to financing or credits.


Foreign Trade: productive resources and limited factors

Besides these restrictive factors of technology, environment, physical and economic-financial space there are the restrictive protectionist factors that you can see in the blog:

For this reason, because they do not have competitive technology, a favorable environment, viable physical space and sufficient economic and financial resources for production, many countries need to import products and services that they can not produce. In the same way many countries are able to supply these demanded products and services.

Therefore, the need to exchange products and services is an inherent action in international trade.

INTRADEBOOK helps you to overcome these challenges with an international business solution that solves MARKET, ROUTINE and LOGISTICS problems in international trade.

Image: Mecklenburg-Vorpommern

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