ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel
  • »
  • Politics and Social Issues»
  • Economy & Government

The Benefits of International Trade

Updated on October 23, 2012

The subject of international trade is being discussed this election year as well it should given the fact that today it is not about the economy of one country but the global economy. It is true that countries develop talents for specific products or services and as such can do a better job than others. The importance of international trade cannot be denied. The world has become more closely connected not only with the Internet but with the need to expand sales for products and services across the globe.

In our country the fact that international treaties are being negotiated provides a level of recognition that international trade is an essential element in this global economy. Companies can no longer rely on customers in their own country but many develop marketing strategies to attract new customers across the world. Developing countries are acquiring a taste for more products from other countries and as such increase the demand for products all over the world.

The concept of international trade and the process for understanding it and tapping into it is something companies today need to address in their marketing strategies. Reaching out to customers across the world is more easily achieved through the technology we now have. International trade does not just take place through treaties but also involves companies acquiring customers internationally through their marketing efforts. The key to companies successfully marketing their products or services is a demand must exist for what they are providing. In addition the quality of what they provide must be equal to or better than their competitors.

Some reports have cited the increase in manufacturing capabilities and production in countries such as China has increased competition throughout the world. China is only one example of the increase in competition. Competition through increased production anywhere is not the only problem for companies today as many individuals with the economy today are starting their own businesses. Dependent upon what products or services they provide the amount of competition must be addressed through marketing efforts. Starting a company today is not an easy task and there are many aspects which need to be addressed. International competition/trade is something that cannot be ignored.

Another aspect with respect to international trade involves the price a company charges for their products/services. Competition and quality along with price is what will determine if a company will have international and local customers. Companies must also remember that the currency exchange will impact the success of acquiring customers. The price in American dollars will be much different when the price is calculated in the currency of foreign countries or Euro dollars. This can make a difference whether individuals will purchase products or services.

The benefits of international trade far surpass the negatives. One negative is the financial support some countries provide their businesses while the United States does not. The positive side is the opportunity expand customer base. This is accomplished by multiple marketing activities to identify the products available to potential new customers while providing the benefits as compared to present or potential competitors. Businesses need to sell their products and services and what they offer associated with them after the sale. This is an important element as customers who buy products or services are looking for the type of services offered after a sale. Customer service should be present before and during the sale but customer service after the sale is an element customers appreciate and can keep them as customers. Poor customer service will cause a company to lose customers even if they have a great product. Good or great customer service will provide an avenue to keep present customers and potentially gain new customers as customers talk to friends, neighbors, family and co-workers. This kind of connection is even more important in international trade. Word of mouth is the type of advertisement money cannot buy.

As identified in the Presidential debate on October 22, 2012 international trade is an important element to connect with other countries. International treaties must benefit all countries for them to be successful. Developing cooperation in terms of international trade is not an easy task but it can be accomplished. The global economy as it is today is dependent upon the success of international trade and all countries must understand that cooperation through treaties result in a win/win situation. The main point about international trade agreements is to increase the opportunities and markets for products from all countries. While the opportunities are there it is up to the individual companies/businesses to market their products/services to increase demand. Successful marketing techniques and potentially new techniques may be required to attract new customers in other countries. Companies must understand and identify how products will benefit individuals in other countries. The benefits in one country may not be the same as another and understanding the distinction between them will make the difference between success and failure in the global economy.


    0 of 8192 characters used
    Post Comment

    • Dennis AuBuchon profile image

      Dennis AuBuchon 5 years ago

      Thanks for providing your comments. With everything including international trade there are going to be positive and negative effects. I appreciate your comments but I feel that international trade overall benefits our economy by providing additional opportunities to American bussinesses. The key to international trade for the most part involves the content of trade agreements with other countries. These agreements must benefit all countries or there is no justification for signing them. The final agreements involving international trade must be approved by Congress before they become effective.

    • profile image

      jimdavis11 5 years ago

      I think our foreign trade policies are the driving force behind our economic woes and we will not see a strong recovery unless the are amended Here is why! Sixty thousand plant closings since 2000. Over six million good paying jobs gone. Source AFL/CIO. (There are others but I don't have them at my finfertips at the moment)

      Since Jan.1, 2000, according to the US Census Foreign Trade Division, we have been sending over 1.5 million dollars (1.1 million for goods, nearly one half million for oil) each and every minute overseas to cover our foreign trade deficit.

      The information supplied by the government says cars, car parts, and machinery are big US exports but they don't mention most of it is used cars, used car parts and used machinery.

      Our TPP negotiations are being held in secret as per official policywhich states, "only government officials and OTHERS involved in the negotiations have access."

      The World Trade Association has the following policies as regards to the environment, worker pay and child labor. Environmental protection requirements by member nations are seen as disguised protectionism and not allowed. Low wage nations view their low wage advantage the same way so high wage nations can't use conditions because it is disguised protectionism. Even though the WTO acknowledges child labor complaints, the issue has never come up for a ruling therefore the WTO has no position on child labor.

      Please tell me how foreign trade is good for the US economy. Please tell me how we could end up in a trade war if we amend our trade policies. Last but not least please tell me how losing our no 1 position as the worlds leading manufacturing nation is not a threat to national security when most research and development is done by private business. It is these nations, and their armed forces that will benefit. Unless we amend our trade policies this nation is doomed!

    • Dennis AuBuchon profile image

      Dennis AuBuchon 5 years ago

      Thanks for stopping by and providing the information you have identified.

    • pramodgokhale profile image

      pramodgokhale 5 years ago from Pune( India)

      Yes Sir,

      There are lots of benefits of International trade. In India we enjoy globalization and liberalization both, because we opened our economy in 1991 and we are coupled with global economy and no reversals there.

      The fundamental thing is that the nations which are highly developed with all mechanisms at advantage and those are less and least developed nations ,this disparity turned into bitter clashes and trade war begins here.

      There are many destinations on globe, such as, USA is a biggest Arms industry, China low cost mass production center, India economy with restrictions, EU is struggling with burdens despite many merits ,East Asian nations with group ASEAN insulated their economies ,Africa and South America with huge natural resources being looted by developed nations, Middle east oil economies with funds worried over the discontent of their citizens. The situation can not be made ideal by just thinking , lots of initiative and consensus needed where International trade would benefit mankind.

      pramod gokhale

    • Dennis AuBuchon profile image

      Dennis AuBuchon 5 years ago

      Thanks for the comments and I agree we do not need a trade war.

    • profile image

      Howard Schneider 5 years ago from Parsippany, New Jersey

      Excellent Hub, Dennis. You are correct about the vital importance of international trade. That is why both political parties need to cool down the rhetoric against China. The last thing we need is a trade war. Quiet trade negotiations are needed to bring down barriers.