Factors Influencing International Trade Essay

Introduction

International trade (sourced from Wikipedia.com). Is the exchange of capital, goods, and services across international borders which involve the activities of the government and individuals. Namibia has a large quantity of natural resource such as uranium, diamonds, and fish etc. Furthermore, Namibia engages in international through exchanging some of its natural resource for money and to gain different material or resources that are not available in the country. International trade may have advantages or positive impacts on Namibia such as large-scale production (Nations of the world can dispose of goods which they have in surplus in the international markets) and have optimal use of natural resources.

Aim

This is research based on

Inflation

Inflation is the continuous and significant increase in general price level of the standard of living of the people of the country. The higher the inflation rates the lower consumption rate. Hence, if a country’s inflation rate increases compared to other countries with which it trades, its current account will be expected to decrease, other thing being equal. Consumers and corporations in that country will most likely buy more goods overseas due to high local inflations, while the country’s exports to other countries will decline.

2. Government

Greater public infrastructure investment can facilitate a country’s participation in world markets by for instance, reducing trade cost and hence increasing supply capacity. Such investment can therefore lead to the emergence of new players in international trade. Business like Bank Windhoek if it invests in roads, port and other transport infrastructure can strengthen regional trade while investment in Information and Communications Technology (ICT) infrastructure can enable a larger number of international