Foreign trade meaning and importance

What is foreign trade meaning:-

Foreign trade is the lifeblood of countries with the rest of the other countries, as the more they increase those foreign trade relations led to a remarkable recovery in the country's economy, so it seeks to many countries put foreign trade as a priority to achieve development plans, the trade appeared As a result of the massive expansion that took place in the economic exchange processes, as they are no longer closed or closed based on a specific region, the state chooses a specific and specific direction in the trade relations that You do it abroad, and this includes all of the legislation, decisions, and any action taken by the state , Then put it into practice. There are many definitions of foreign trade. It is a group of activities that are based on the product, service, capital, and commodity exchange across international and regional countries Foreign affairs are a major pillar in the economy of most countries of the world, and they also play an effective role in influencing directly on the gross domestic product of those countries. By looking at many concepts

s and terms related to foreign trade, we can say Foreign trade consists of two components: exports and imports, whether visible or not perspective. And many researchers defined it as any commercial transaction carried out by the state with its counterparts from other countries from transferring any material thing of benefit to both countries to satisfy the greatest amount of possible needs.

what is the importance of foreign trade:-

Allocation and division of labor: This means that some countries have raw materials and some countries know

How are these materials operated? This is where the role of foreign trade comes in. The country that has the raw materials comes into play It is exported to countries that have machines and equipment to operate these raw materials.

Price Equality:- Determining the price of an international product depends on the forces of supply and demand

Consumer foreign trade. Connecting countries to each other: The presence of foreign trade made there was an exchange of goods between countries

And some of them led to closer relations between countries and this interdependence in the transfer of technical development between countries. The reason was also.

Increasing the national income: Foreign trade was the reason for the increase in the national income of some countries

whose exports exceeded their imports, thus improving the standard of living of individuals. Foreign trade also contributed to providing consumers with a lot of choices in goods.

This helps the consumer to choose the best commodity for him without being limited to specific products.

Foreign trade also helped provide and create job opportunities in various sectors and this leads to

In turn, it improves the individual's level of income and standard of living.

Foreign trade helped in the spread of globalization and electronic commerce It is easy to buy items online.