International trade is the exchange of goods and services across the international boundaries of countries. It is an exchange of goods and services among different nations. In various countries, it represents a significant share of the GDP. The economic and social importance of international trade has increased in recent years in various countries. Trading globally gives consumers and countries the opportunity to purchase any product that they want. Almost every kind of product like food, clothes, machinery, and services is available in international markets.
A product sold in the international market is called an export, and a product that is purchased from the global market is called an import. Imports and exports are accounted for in the balance of payment of a country. Industrialization, advanced technology including transportation, globalization, and outsourcing are all having a major impact on international trade. Without international trade, nations would be bounded to consume the goods & services produced in their own country. Instead of importing the factors of production countries prefer to Import finished products that required fulfilling the needs of people.
We live in the global marketplace. The food on your table might include fresh fruits from chilled, the Toys you give to your child may become from china, and the car you might drive come from Japan. The crude oil might be from Saudi Arabia, and the salary you receive may come from the export sales. The first wave of globalization started in the 19th century. The share of exports in GDP increased from 1% to 9% from 1820 to 1913. Globalization is the process by which the world is isolated through technological distance, and becomes increasingly interconnected, it increases the interaction between people around the world that involves the sharing of ideas, goods, and services.
Foreign Trade of Pakistan
Pakistan has bilateral and multilateral trade agreements with many nations and international organizations. Pakistan is a member of the World Trade Organization (WTO), part of the South Asian Free Trade Area agreement and the China-Pakistan Free Trade Agreement. Fluctuating world demand for its exports, domestic political uncertainty, and the impact of occasional droughts on its agricultural production have all contributed to variability in Pakistan’s trade deficit. The trade deficit for the fiscal year 2016-17 is $32.578 billion.
Pakistan’s exports continue to be dominated by cotton textiles and apparel. Imports include petroleum and petroleum products, edible oil, chemicals, fertilizer, capital goods, machinery, out mobile industrial raw materials, and consumer products. On 12 December 2013, the European Union granted GSP Plus status to Pakistan until 2017, which enabled it to export 20% of its good with 0 tariff and 70 percent at preferential rates to the EU market.
Pakistan exports rice, kinnow, mangoes, furniture, cotton fiber, cement, tiles, marble, textiles, clothing, leather goods, sports goods, cutlery, surgical instruments, electrical appliances, software, carpets, rugs, ice cream, livestock meat, chicken, powdered milk, wheat, seafood (especially shrimp/prawns), vegetables, processed food items, Pakistani-assembled Suzuki’s (to Afghanistan and other countries), salt, onyx, engineering goods, and many other items. Pakistan exports cement to Asia and Middle Eastern countries. Read more
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