What is foreign trade and international trade
What is foreign trade and international trade
What is foreign trade and international trade
Knowing the basic definitions of foreign trade can help us understand and do international business more clearly and securely.
What is foreign trade and international trade
Trade
Trade itself is confused with foreign trade in its origin, since from the beginning of time, one community when negotiating with the other, were already practicing this trade, initially exchanging goods for merchandise, and then, by finding a commodity as standard (the salt, for example), began to use it as currency until we got to the paper money.
Commercial activity can be internal (within the country) or international (between countries). International trade is a branch of the commercial sciences that make up the Political Economy.
International Trade
It is the set of studies and commercial operations between two or more countries where there is exchange of goods, services and/or capital.
Foreign Trade
It is the set of studies and commercial operations expressed in national rules, norms and laws.
Foreign Trade is executed by the State or Government and International Trade is exercised by companies and/or individuals and/or institutions. Therefore, when we study the Foreign Trade of a country, we are studying its rules, norms, laws and its commercial policy. And when we speak of International Trade, we are referring to exports and imports of goods, services and capital.
Export
It is the output of a commodity and/or service from a customs territory, generating a currency inflow (currency).
Import
It is the entry of a commodity and/or service into a customs territory, generating an outflow of currency (currency).
Customs Territory
The customs territory is understood to be the place duly authorized by the authorities of the exporting/importing country to operate in the liberalization of exports and imports.
What is foreign trade and international trade.
Learn more about other foreign trade topics on the Intradebook blog.
Source: Intradebook – International Trade Book
Image: Bridging Gaps
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Thanks.
Thank you for helping me understand more about foreign and international trade. I was watching a documentary about how it works with local business owners and saw that most hire international trade compliance services to handle the complexities of the global trade process. It’s good to know that international trade is actually a division of the commercial sciences that make up the political economy. Thanks again for your informative article, Alfredo!
Thank you, Levi, for your comment. We are very happy if we can help you to understand more about international trade. Inside the INTRADEBOOK platform you will have thousands of steps and procedures for all details of the international trade. Regards. Alfredo Kleper Lavor