Impact Of International Trade

What are the impacts of international trade? Before answering that question, we need to know about the meaning of international trade in advance. International trade is a trade done by two or more countries. Examples of international trade such as trade in batik cloth from Indonesia to the Dutch state (export) or computer trade from the UK to Indonesia (imports).

Background on International Trade
Why the international trade. Here are a few things behind the international trade.

- Differences SDA (Natural Resources)
Every country has natural resources that different. For example, between Indonesia and America, when Indonesia rice-producing countries then America is the largest producer of wheat. Two of these materials (rice and wheat) is the staple food required in the production process. Indonesia needs wheat, as did Americans also need rice. Inequality of resources that causes the two countries eventually do international trade.

- Expansion
International trade can also occur due to expansion. A company that has been successful in their own country may have a desire to expand by opening more markets in other countries.

- Advanced age More
Undeniably, the progress of time also contributed to international trade activities. In this modern era is, every country can not stand alone, and certainly he needs another state, whether it's fields: technology, economics, education, or social. Interdependence among countries in the world that is how they are involved in international trade.

- There's no hope in the Interior
Although the reason is actually less accurate, but in fact it is true that international trade occurs because the domestic market in a negative response. With a budget of a little speculation and prediction, a company may prefer to sell their products abroad. In fact, there are also successful.

We certainly still remember about the success of one of the traditional-based beauty company that is now famous. Initially, the domestic market responded negatively, that's why the owners chose to sell beauty products abroad. As a result, overseas community responded positively and enthusiastically. Now, the beauty company that already has a big name both at home and abroad.

- Impact of International Trade
After knowing what are the driving factor of international trade, then the next we're going to criticize what the impact of international trade.

One of the most meaningful impact in the presence of international trade is a businessman in the country who would not want to improve their quality when the product or service being offered still want to be accepted by the public. Competitors not only come from fellow entrepreneurs in the country only, but all employers in the world that have similar products.

However, foreign trade should we value as something positive. Is not nice if all employers are competing to be the best. That means they give their best to consumers anyway.