The Significance of International Trade: An Overview - Essay Example

As an initial matter, it is useful to note some of the many ways in which international trade is promoted in the modern era. There are many ways in which international trade is promoted. In the United States, for instance, international trade is promoted in political, social and economic ways. It is promoted politically through advocacy and education campaigns, it is promoted socially via retraining programs for workers displaced in the labor market by international competition, and it is promoted economically through import-export financing programs and governmental programs designed to aid individuals and business organizations in the international arena.

In America alone, there are many private and public organizations dedicated to promoting world trade, such as the United States International Trade Commission, the Department of Commerce's Bureau of Industry and Security, and The International Trade Administration. . The relationship between international trade and world output is the primary economic reason for the recent pursuit of globalization policies by countries across the world. First, at the national level, international trade represented an important percentage of Gross Domestic Product.

This may be oil in the Middle East, tourism in Thailand, finance in England, or high technology products in America and Japan. Taken together, the effects of international trade on world output are similarly significant. World out increases as international trade increases and international trade increases as barriers come down. This essay is not suggesting that there are not related problems, related to income disparity and good governance, but that increased international trade tends to increase world output.1.3 Broad Patterns of International TradeBefore discussing the broad patterns, it must be noted that, in some ways, the notion of free markets and international trade is an idealistic economic theory based upon many assumptions which are difficult to attain in the real world.

That said, however, international trade can be characterized by reference to certain broad patterns of behavior. First, countries seek to take advantage of comparative economic advantages in international trade. This may result in export strengths or a need to import certain goods and services. Second, there is a perceived need to reduce international tariffs and other regulatory barriers in order to preserve the integrity of the comparative advantage concept. Third, because of the increasing mobility of trade, there is also a pattern emerging which causes and requires a freer movement of capital and labor across national borders.

This pattern reflects the need of businesses to take advantage of