Definition of international trade:
Exchange of goods and services between the people of two countries included the changes in currency.
The business of buying and selling commodities beyond national borders
Home Trade or domestic trade
"Trade by a company within the country in which it is based, is known as home trade or domestic trade".
In the home trade, people try to specialize in the production of those commodities in which they have a comparative advantage.
a. Import
The activity of purchasing goods and services from foreign countries and brought into domestic to be used by domestic individual and organizational.
Categories
· Directly through foreign agent or dealer
· Indirect through local agent which acted as firm intermediary with foreign customer.
Example:
Malaysians import Kurma from Saudi Arabia country during Ramadhan.
b. Export
Export is the activity of sell goods and services to overseas to individual or organization in foreign countries whether by individual or organization.
Categories:
· Directly through dealer or foreign agent
· Indirect through local agent which acted as firm intermediary with foreign customer
Example:
Malaysia export palm oil to US
0 comments:
Post a Comment