International Trade
International Trading Services
International trade is the exchange of goods and services between countries. This type of trade helps to build and shape a world economy, in which supply and demand, affect and are affected by global events. Global trade provides consumers the opportunity to be exposed to goods and services not available in their home countries. Products that are sold within an international trading market are considered exports, while those purchased from the global trade market are labeled as imports.
Contact The Wave Shipping for more information on our international trading services, or submit a project for a complimentary price quote.
Important Aspects of International Trade
International trading services offer a wide range of benefits to both the importing and exporting parties within an international trade agreement. Despite the notion that there are some disadvantages associated with global trade, the benefits of international trade often outweigh any negative aspects.
For example, if a country exports their products throughout the world, that means that their products are in demand. If their products have high demand that means they will need a larger workforce to produce more products to supply that demand. This basic economical principal of supply and demand builds the workforce infrastructure of a country, which is what is ultimately necessary within a world that is built on global trade. Some of the other benefits associated with international trade, include the following:
Product Variety
International trading services provide people around the world with a diversity of products that they would not otherwise have access.
Cost Reduction
One of the most immediate benefits of international trade is lower costs to consumers. The lower cost is the result of two factors. First, companies can produce items overseas, saving money on labor and material costs. Second, an increase in competition forces companies to make their products more attractive to consumers either through product features or lowered prices.
Increased Production Efficiency
The increase in competition and price pressure from imported goods forces companies to become more efficient in their production practices and overall operation. Companies achieve better efficiencies in several ways. They may innovate new methods of production or improve the processes they already have in place. This efficiency ultimately drives overall cost reductions.
Innovation
Competition within global trade forces companies to improve their products to compete with other companies. They must innovate to distinguish their products from increased competition, improve their cost to consumers and to be first to market with new ideas.
Resource Specialization & Allocation
Certain countries have an abundance of resources that they are more than happy to export through international trade. Other smaller countries do not have that luxury, so they are more dependent on imports. Global trade allows countries to maximize their resources through the exporting process.
Increased Surplus Output
Without international trade, a company’s potential market is limited to the population of the country in which it operates. However, International trade expands the total market size to include every nation with which the United States maintains trade relations.
Increased Jobs in Certain Sectors of the Economy
Certain aspects of global trade can take away jobs (mostly on the large manufacturing levels), however, global sales opportunities have created hundreds of thousand of jobs within the small business sectors of national economies. These small businesses often do not have the ability to outsource most of their business.
Contact The Wave Shipping today to discuss how our international trading services can benefit your growing company, or submit a project for a complimentary price quote.
Reallocation of Manufacturing Capacity
When a company outsources their lower end commodity products it frees up manufacturing capacity for the company to increase their production on their core competency.
Fully Customized International Trading Services
The Wave Shipping provides unique and fully customized international trading services. We provide global trading services and strategic sourcing for our customers who want to specifically focus on growing their business.
