International Trade

The foreign trade is all about exports and imports. Backbone of any foreign trade between countries is those services and products which are being traded to another location outside a particular country's borderlines. A few nations are adept at producing certain products at a cost-efficient cost. Possibly it's because they've the abundant natural resources or labor supply which make up the raw materials wanted. Irrespective what the cause, ability of a few nations to produce what other countries want is what makes foreign trade function.

What is International Trade

The international trade is the exchange of services and goods between nations. These kinds of trades gives rise to a world economic system in which costs or demand and supply affect and are affected by world consequences.

The political change in Africa for an example may result in an increase in the labor cost, and thereby increasing the constructing costs for an American sneaker company based in Malaysia (Malaya), which would then effect in an increase in the cost that you've to pay to purchase the sneakers at your local center. Decrease in the price of employer, and on the other hand, would result in you being forced to pay less for your new shoe.


Foreign Trade Policy

The main legislation concerning foreign trade is the Foreign Trade (Regulation and Development) 1992 Act. This Act provides for the Regulation and Growth of foreign trade by helping imports into and augmenting exports from India and for matters associated there with or incidental to it.

Since, as per the provisions of the Act (work), Government:-

(i) Could make provisions for controlling and helping foreign trade (business deal).

(ii) Could disallow, regulate and regulate imports and exports, altogether or defined cases also as subject them to freedoms;

(iii) Authorized to announce and formulate an import and export policy and as well better the same occasionally by notification in the Official Problems.

(iv) This as well authorized to nominate a "The Director General of Foreign Trade" for the intention of the Act including implementation and formulation of the export-import policies.

Next Chapters

Single Entry Accounting
Depreciation Dividends in Accounting
Double Entry Accounting
Cash Book
Discount Assets
Ledger in Accounting
Final Accounts
Liability Debenture
Journal Entry
National Income
Trial Balance Payroll Accounting
Drawings in Accounting
Petty Cash Book
International Trade Admission of a Partner
Book Keeping
Bill of Exchange  

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