| International trade refers to the transfer of products | | | | efficiently that are not available in other countries at |
| from one country to another. International trade | | | | low cost. Other countries can get those items by |
| increases the level of world economy, and is | | | | trading with China. This process is known as the |
| concerned with the affect of international activities | | | | specialization of that particular company in the |
| on the demand and supply worldwide. It provides | | | | international trade. |
| opportunities for the customers as well as for the | | | | International trade increases the efficiency of the |
| countries, to explore those products in other | | | | country and also allows it to participate actively in the |
| countries that are not available in their own country. | | | | growth of economy at the global level. This helps in |
| International market is a hub where every type of | | | | increasing the economy very efficiently, thus |
| products and services, such as clothes, eateries, | | | | providing China a competitive edge against other |
| parts of the automobiles and other electronic | | | | participants in the global economy. |
| devices, jewelry, oil products, wines and other | | | | International trade involves two different concepts |
| stocks, are available. International trade also involves | | | | regarding the control level on trade: |
| services such as banking, shipping, consulting and | | | | -Free Trade |
| tourism. The service or product that involves selling | | | | It is a liberal approach as it imposes no limitations on |
| by some country in the international trade is called an | | | | the trade. The main scheme is to focus on the |
| export and the one which involves buying by some | | | | demand and supply factors that execute on the |
| country from the international market is called an | | | | international level, to ensure that production process |
| import. | | | | is efficiently carried out. |
| International trade allows well-heeled countries, like | | | | -Protectionism |
| China, to use all their resources including currency, | | | | It states that guidelines for doing international trade |
| labor and technology, to the fullest. Every country | | | | are very necessary for the proper function of the |
| possesses a different set of resources from the | | | | market. If the market is not working efficiently, it will |
| other countries. Similar is the case with China. China | | | | definitely obstruct the growth of international trade. |
| has low cost labor and very advanced technology, | | | | Protectionism is forced in the form of tariffs and |
| which enables it to produce those products very | | | | quotas. |