International Trade - Essay Example

The trade is carried out to share the product or service which is very unique to the region and which has more economical price tag. The best example would be the electronics products from Korea or china are cheaper and efficient than the same products manufactured in the US. So, a trade opportunity between national regions provides an opportunity to explore the share the richness of the other region. The gulf countries exchange oil for the food and other essential commodities with other countries to feed their population and in return supply them with the abundant resources of oil.

The proportionality relation depends on the kind of product in offer. An agriculture product like rice in future may be in demand as the supply has declined due to the decrement in the production. The demand is in terms of trade opportunities and the production is in terms of the output. According to world trade organizations statistics, over the period of 50 years after 1947 the volume of world trade increased at an annual rate of slightly more than 6 per cent and world output by close to 4 per cent.

The changing character of the demand for the finished goods has been increased in developing countries like India. The low production hubs which were supplying the raw materials for the industries in developed countries has smelled the taste of their natural resources and started to be indigenous in developing their own custom made goods. There was sudden raise of talented lot in the developing countries. The countries which were initially the hubs for supplying the raw resources started providing the human knowledge factor with the skilled labor immigration to developed countries.

The developing countries political systems were fine tuned to suite the regional market for the other nationalities for investing, thus providing a platform for the foreign direct investments to pour in to