Answer to Question #231219 in Management for Sukoluhle

Question

Explain your company’s involvement in international trade in detail. Include the following:

1. The fundamentals of international trade

2. Policies and procedures on international trade

3. The concept of counter trade

Answer 1

International trade's role in the economy is to strike a balance between imports and export, which maintains a strong economy and high living standards. Maybe the most important role of international trade is to maintain the health and happiness of the citizens of a country.

Trade policies determine the market size for companies' output and thus have an impact on foreign and domestic investment. Trade policies have a growing influence on investment climate over time. Investment climate

Countertrade is an international trading system that helps governments reduce trade imbalances between themselves and other countries. The exchange of goods for other goods directly or indirectly involves instead of money.

Countertrade is often used in cases where a foreign currency is in short supply or where foreign exchange controls applied by a country are limits imposed on imports to buy foreign products. Developing countries often use countertrade to control commerce and as a technique of development.