Selasa, 27 Oktober 2009

The benefits of international trade

* Obtain goods that can not be produced in their own country
Many factors influence the production differences in each country. These factors include: condition of geography, climate, level of mastery of science and technology and others. With international trade, each country is able to meet the needs that are not produced themselves.

* Obtain the benefits of specialization
The main cause of foreign trade activities is to obtain profits realized by specialization. While a country can produce an identical item to that produced by other countries, but there are sometimes better if the country is importing goods from abroad.

* Expanding markets and increasing profits
Sometimes, entrepreneurs do not run the machines (production equipment) with a maximum because they fear will happen excess production, which caused a decline in the price of their products. With international trade, the entrepreneur can run the engines to maximum, and sell the excess product out of the country.

* Transfer of modern technology
Foreign trade allows a country to learn the technique more efficient production and management methods are more modern.

[edit] Factors driving

Many factors are pushing the country to international trade, including the following:

* To meet the needs of goods and services in the country
* The desire and benefit increases state revenue
* The difference in the ability mastery of science and technology in the process of economic resources
* The existence of excess domestic product that needs new markets to sell these products.
* The difference in circumstances such as natural resources, climate, labor, culture, and population differences caused production and that the lack of production.
* The common sense of a good.
* The desire to open cooperation, political relations and support from other countries.
* The occurrence of an era of globalization so that no single country in the world can live alone.

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