Banking Perspective - Introduction To International Trade

As natural resources are unevenly distributed in different countries, a country cannot produce everything it needs. As a result, a country will buy what it needs from countries that are good at producing them and in return will sell its products to countries, which require them. The products will be moved from one country to another by means of aircraft, railways, trucks, ships or a combination of two or mode modes of transport.

This buying or importing and selling or exporting of goods is known as International Trade.

Main parties involved in International Trade

• The buyer, who places orders and imports goods.
• The Seller, who manufactures and exports goods.
• The Manufacturer, if the seller does not make his own goods.