Globalization And International Trade

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Over the last two decades, the desire for businesses to move into the import and export arena has grown and changed drastically in response to world developments, economic changes, consumer demands and advances in technology. The world is getting closer in terms of cross border trade and investment and by national differences in culture and business systems. Economies are merging into one huge interdependent global economic system.
Globalization is affecting firms that previously operated in a nice, easy and protected national market. However the world we live is not perfect. It is characterized by considerable amount of uncertainty regarding the demand, market price, quality and availability of own products and those
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Archaeological discoveries indicate that the Sumerians of Northern Mesopotamia enjoyed great prosperity based on trade by sea in textiles and metals. The Greeks profited by the exchange of olive oil and wine for grain and metal somewhere before 2000 BC. By around 340 BC, many devices of modern commerce had made their appearance in Greece and its distant settlements: banking and credit, insurance, trade treaties, and special diplomatic and other privileges. With the discovery of America in 1492, and sea routes to India in 1498, trade flourished and luxury goods and food products such as sugar, tobacco, and coffee became readily available in the markets of Europe.
The major characteristics of economic relations from 1900 until the outbreak of World War I were the further development of trade and the emergence of a world economy. This was the Dawn of Industrial economy
The volume of world trade in manufactures fell by 35 percent between 1929 and 1932, and prices also fell by a similar amount. This wave of protectionism produced a massive contraction of international trade and further aggravated the
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It is the most traditional form of international business activity as importing or exporting requires the least commitment and risk to the company’s resources. For example, a company could produce for export by using its excess production capacity. This is an inexpensive way of testing a product’s acceptance in the market before investing in local production facilities.
A company could also use intermediaries, who will take on import-export functions for a fee, thus eliminating the need to commit additional resources to hire personnel or maintain a department to carry out foreign sales or purchases.
Over the past few decades, the major emphasis of many developing countries had been on the liberalization of world markets for their exports. Their focus has now shifted from demanding tariff cuts, by wealthy countries for their exports to requesting technical assistance to increase production and exports. Hence
Major determinants of exports are
1. Presence of an entrepreneurial

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