Economy

What is international trade? »Its definition and meaning

Anonim

The International Trade is an economic method that is used to promote development and optimal quality of life between countries reaching multilateral agreements in order to preserve a lifestyle that meets all the needs of the community. We all know that there is no country capable of surviving on its own, it needs a population market that can only be found outside its borders. International trade complements the needs of each country, for example, Havana is a country that lacks oil, while Venezuela has the largest oil reserves in the world, which is why Venezuela sends Cuba the oil it needs. to produce fuels and their derivatives in exchange for basic services and practical methods of teaching and medicine.

International trade is a widely studied field, subject to constant analysis and sudden changes, given the circumstances in which diplomatic relations between the countries that make up these alliances are affected. There are organizations dedicated to guaranteeing optimal performance among the peoples that comprise it, such is the case of MERCOSUR, is an organization in which the results and guarantees of foreign trade carried out by the South American countries that comprise it are protected and ensured. These organizations create eventual strategies in case of recessions and pressure states in which the economy can be directly affected by an external agent such as war or natural disaster. Organizations such as MERCOSUR also promote plans in order to generate a better livelihood for their countries that make up, for example, the creation of the SUCRE, a universal type currency in which all transactions, exports and imports between trading countries are carried out. All this in order to avoid problems caused by exchange rate problems.