The Importance of International Trade

The buying and selling of goods and services across national borders is known as international trade. International trade is the backbone of our modern, commercial world, as producers in various nations try to profit from an expanded market, rather than be limited to selling within their own borders. Ther.e are many reasons that trade across national borders occur, including lower production costs in one region versus another, specialized industries, lack or surplus of natural resources and consumer tastes.

The benefits of international trade have been the major drivers of growth for the 21st Century. Nations with strong international trade have become prosperous and have the power to control the world economy. The global trade can become one of the major contributors to the reduction of poverty. Under the concept of free trade, the best products are produced and sold in a free competitive market. Such benefits of production efficiency like better quality and lower price are available to all peoples of the world.

One fundamental principle in international trade is that one should buy goods and services from a country which has the lowest price, and sell his goods and services to a country for the highest price. This is good for the buyers and for the sellers. Another principle is that with free trade, the less developed countries have the opportunities to accelerate the pace of their economic development. They can import machines and adapt foreign technology. They can send their scholars and technocrats to more progressive countries to gain advance or new knowledge and skills which are relevant to the particular needs of their developing economies. For example, the J-Visa has been a tool used by the United States to assist other countries to train professionals in the United States, who would then return to their home countries with a wealth of new knowledge.

No country in the world can be economically independent without a decline in its economic growth. Even the richest countries buy raw materials for their industries from the poorest countries. If every country produces only for its own needs, then production and consumption of goods would be limited. Clearly, such situation hampers economic progress. Furthermore, the standard of living of the people all over the world would have no chance to improve. Because of international trade, people with money can acquire goods and services which are not available in their own countries. Hence, satisfaction of consumers can be maximized.

In the United States the EB5 program is used to attract foreign investors that will enhance US participation in International Trade through the EB5's multicultural appeal. Additionally, through the purchase of a Closely Held Business, international investors can also easily assimilate into US business culture, because through the purchase of a Closely Held Business, the seller of that business would include business training for the buyer.

To learn more about how Figeroux & Associates can assist you in investing in the United States, the Caribbean or Africa, please complete the consultation request below.




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