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Global Trading

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Submitted By donb31
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Global Trade
DonBosco Hein
Kellogg Community College
Concept paper 1

Abstract
Global trade or international trade is simply the exchange of goods and services all around the world. Global trade involves the export and import of goods and services between countries. Goods and services that enter into a country for sale are called imports and goods and services that goes out of a country is call export. Some countries have an advantage and disadvantage on their goods and services. The exchange rates can effects the value of imports and exports. Comparing China and Russia, China has lower labor cost and they have more people in their country. But 58% of Russia exports is oil and oil based products. If the global trade did not exist, it would do a lot of damage to the today’s economy.

The Importance of Global Trade Global trade is very important in the economy because it benefits to all the countries and it also create peace between nations. Global trade is simply the exchange of goods and services between countries around the world. No one knows when did global trade started but many countries have been exchanging goods for hundreds of years. Global trade involves the export and import of goods and services across the international boundaries. Goods and services that enter into a country from another country for sale are called imports and goods and services that goes out of a country to another country are called exports. Dating back to about three thousand years ago, Silk Road and Niles River played a big role in trading goods and services because people used these routes to import and export goods to other countries and make treaties.
The Functions of Global Trade
A country’s exports are mostly based on the opportunity cost, absolute advantage and comparative advantage. The opportunity cost is when a country gives up its second best choice in order…...

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