Introduction
International trade, also known as world trade, generally refers to the import and export of goods and services between different countries. It is a key part of the global economy, it can create jobs and help boost economic growth, thus improving the wellbeing of people in all countries.
The structure of international trade has changed in recent years. For example, some international trade transactions have shifted from low value-added primary goods to more specialized manufactured goods, services and technologies.
Growing Developments
Since the 1990s, international trade has experienced a rapid growth, particularly in terms of the volume of goods and services traded. This is mainly due to the globalization of production and technology, the increasing liberalization of global trade policies and the advent of new information and communication technologies.
Developing countries have been able to reap the benefits of this growth in international trade, as it has opened up new markets and allowed for a larger range of goods and services to be traded. This has enabled them to access to cheaper goods and services from all over the world, which in turn, helps to reduce poverty and promote economic growth.
International Trade Goods
The structure of international trade is mainly composed of three main categories of commodities and services. The main categories include:
1. Primary goods: These are goods produced in large amounts, such as agricultural and energy products.
2.Manufactured goods: These are goods that are produced and processed using advanced technologies, like automobiles, aircraft and electronics.
3.Services: These are intangible services, such as financial and business services that can be traded between countries.
Conclusion
The structure of international trade has changed dramatically over the past few decades. International trade has enabled different countries to access to goods, services and technologies that formerly were not available to them. As a result, developing countries have benefited from improved living standards and fewer restrictions on their growth. International trade can therefore play an important role in the development of a nation.
