International trade

International trade is a trade made by residents of a country with a population of other countries on the basis of mutual agreement. Population in question can be interpersonal (individual with the individual), between individuals with the government of a state or government of a country with other governments. In many countries, international trade became one of the main factors to increase GDP. Although international trade has occurred for thousands of years (see Silk Road, Amber Road), its impact on economic interests, social, political and just felt a few centuries later. International trade also helped to encourage industrialization, transportation advances, globalization, and the presence of multinational companies.
International Trade Theory

According to Amir MS, when compared with the implementation of the domestic trade, international trade is very complicated and complex. Such complexity is partly because of political boundaries and the state that could hinder trade, such as with the customs, tariffs, or quotas of imported goods.

In addition, other difficulties arise because of differences in culture, language, currency, estimates and scales, and the law in the trade.
[edit] Ricardian model

The Ricardian model focuses on comparative advantage and perhaps the most important concepts in the theory of international trade. In a Ricardian model, countries specialize in producing what they produce best. Unlike other models, this model framework predicts that countries will fully specialize a variety of goods than produce commodities. Also, the Ricardian model does not directly enter the supporting factors, such as the relative amounts of labor and capital in the country.