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International Business

Introduction

If you spend a day looking around you, the importance of international trade will become very obvious. You don't have to look far to see this. If you are wearing trainers, for example, then have a look at where they were made. What about your jacket or shirt?

If you have a mobile phone or MP3 player where was that made? What about the computer that you are using to read this information, or the printer that was used to print out the paper on which you are reading this?

How about the car that your parents or yourself might own? Where does the energy that we use to provide us with heating, lighting and other sources of power come from? When you eat, how much of the food you consume was actually produced in the UK?

Trade between countries is an important part of most economies. These days, huge quantities of goods and services are traded across borders carried by air, land and sea and even cyberspace!

In short, our lives and living standards are heavily influenced by the amount of trade we conduct with the rest of the world. Trade brings lots of advantages but it also has a number of disadvantages as well. In the first of two resources on international trade, we will look at these advantages and disadvantages.

This first resource looks at the following areas:

• What do we mean by trade?
• Testing your Understanding
• The Costs and Benefits of Trade