 All commercial transactions between two or more countries.

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Presentation transcript:

 All commercial transactions between two or more countries

 Natural resources  Cost difference  Reason of various countries not trading internationally..

 Study of trade on goods and services  Study of flow of money

 Mobility of labour and capital  Different monetary set up  Different fiscal policy  Production cost  Product immobility  Nationalist feelings  Heterogeneous markets  Different political setups  Different foreign trade policies

 Currency fluctuations  Alien markets  Heavy investments

 Big market for local producers  Economies of scale  Export of surplus production  Fuller utilization of resources  Competitive spirit  Export surplus finance imports

 Unemployment due to imports  Infant industry argument  Exchange rate fluctuation: floating exchange rate of open economies  Unequal distribution of wealth

 International trade  Why..  Risks..  Difference from local trade  Advantages  Disadvantages..

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