What is International Trade?

International trade affects the average consumer in ways that are often overlooked or ignored. Find out why this practice is important to you.

“Nowadays, walking through supermarkets it’s easy to buy coffee from Columbia, Italian salami from Milan or a beautifully crafted Weiss Bier from Bavaria, or even a TV from China, all of this is made possible by International Trade,” says Louw Franken from the School of Shipping.

School of Shipping provides adult tuition in maritime studies specifically relating to the importing and exporting of goods.

Here Franken sheds light on the concept of International trade and its impact on the local economy.

How does it work?

“Simply put, goods or services are bought in one country and sold in another,” says Franken. When goods are bought from the global market it is called an Import. When they are sold to the global market it is known as Export.

Why is International Trade important?

“International trade expands markets for goods and services that would otherwise not have been available to us.”

“One of the biggest positives of international trade is greater competition, which brings us competitive prices, and leaves us with a little more money in our pockets.”
Another benefit of international trade is that it maximises a country’s potential and generates more taxable income that can be reinvested in an economy, according to Franken.

Who are the role players?

In order for international trade to be successful it requires certain role players, these include; the exporter (seller), the importer (buyer), banks for payment, freight forwarders and various government departments.
“Once the international goods arrive in the buyers country the domestic distribution network would then take over.”

To learn more join the International Trade workshop hosted by the School of Shipping. Or choose from a range of short and full time courses

By Cindy Payle - Portal Publishing

Details

Comments