International trade
International trade is defined as trade between two or more partners from different countries (an exporter and an importer). Early international trade consisted mostly of barter transactions.
International trade is also a branch of economics. Traditionally, international trade is justified in economics by comparative advantage theory. New developments include in patterns of international trade: the integration of countries into trade blocs (e.g., European Union, NAFTA, EFTA, CEFTA) and globalisation.
Trade related concepts
Risks in international trade
The risks that exist in international trade can be divided into two major groups:
Commercial risks
- Risk of insolvency of the buyer
- Risk of protracted default - the failure of the buyer to pay the amount due within six months after the due date
- Risk of non-acceptance
Political risks
- Risk of cancellation or non-renewal of export or import licences
- War risks
- Risk of expropriation or confiscation of the importer's company
- Risk of the imposition of an import ban after the shipment of the goods
- Transfer risk - imposition of exchange controls by the importer's country or foreign currency shortages
See also
Referenced By
Alcohol and Tobacco Tax and Trade Bureau | Barter | Business | BusinessAndEconomics | Business and economics | Business and industry | Buying | Classical Economics | Costs of production | Economic | EconomicS | Economic policies | Economic policy | Economic science | Economics/Old talk | Economics articles (master list) | Economics basic topics | Fundamental business concepts | History of trade | International Relations | List of business topics | List of economics articles | List of economics topics | List of international trade topics | Micro-economics | Microeconomic | MicroeconomicS | Modern economics | Oda Nobunaga | Oxfam | Trade | W.T.O. | WTrO | World Trade Organisation | World Trade Organization
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