Global International Trade Industry
The international trade industry involves the exchange of goods and/or services between countries. Trade benefits nations as one country can gain access to merchandise or commodities available in another nation. Technological developments and the deployment of internet services worldwide have transformed the international trade sector. Goods sold to the global market are exports, while those bought from the global market are imports.
Thanks to international trade, countries can avail of a far wider range of goods and services than those readily available in their own region. Exposure to foreign cultures gives rise to demand for goods and services that would otherwise have remained unexplored. Goods available through international trade include jewelry, foods, wine, clothes, and oil. Services available through international trade include banking, transportation, consulting and tourism.
Sustained domestic economic growth allows countries to open their markets to international trade and investment. For consumers, liberalized trade pushes prices lower and makes available a larger choice of goods and services. For companies, liberalized trade allows the diversification of channel resources and risks to areas yielding the highest rate of return. In an international context, competition and investment are facilitated and productivity rises. According to the OECD, full liberalization of trade would boost average real incomes in emerging countries by close to 1.5%.
Obstacles to international trade include quotas and tariffs that are put in place to protect economies but can often undermine international trade by penalizing economies. Export restrictions on raw materials in certain producer nations have given rise to concern in recent years.
Exports
International exports continue to rise, with the World Trade Organization estimating a near 10% hike in commercial services exports in its 2011 report. World merchandise exports were estimated to have jumped more than 20% in the same year. International trade of goods and services are higher within the EU, Asia and North American than within the Middle East, South and Central America, and Africa.
The EU dominates intraregional trade, with more than 70% of EU exports going to the European region. By comparison, closer to 55% of Asian trade is destined for Asian nations. Less than half of North American exports are bound for members of the North American Free Trade Association. Africa, on the other hand, exports the majority of its goods to the EU region, followed by the Asian and North American markets. The Commonwealth of Independent States exports mainly to the EU, and the Middle East exports mainly to the Asian market.
Commercial Services
Commercial services exports increased by more than 10% in the third quarter of 2011 year-on-year, according to research figures from the World Trade Organization. In the first three quarters of 2011, commercial services exports were up close to 15% compared with 2010 figures.
The US, the UK, China, Japan and Germany account for close to 35% of world trade in commercial services. The EU accounts for 45% of overall trade in commercial services. Trade in the services sector in Africa is comparatively far lower, with only two countries within Africa breaking the $25 billion market in the trade of commercial services in 2010.
Merchandise Trade
The US, China and Germany represent the three leading countries in international trade, combining to account for close to 30% of all world merchandise trade. Asia accounts for close to 30% of overall global merchandise trade. Africa’s profile remains relatively low on the international trade landscape, with no African country breaking the $250 billion mark of merchandise trade in 2010.
Market Outlook
International trade has many benefits, including the sharing of goods, services and expertise that fosters innovation and technological development. The OECD points to the importance of rising productivity due to international trade and its role in boosting per capita income.
Governments have the capacity to use trade as a tool to achieve sustainable growth, and policy favoring initiatives open up markets that can lead to higher employment. The WTO underlines the importance of the role of government to achieve common economic goals that fuel growth, bolster employment levels and raise per capita earnings.
Leading Industry Associations
More »
» Download Public Reports
90 reports
- Country report
- May 2012
- 51 pages
... A presentation by: dato Sri mustapa mohamed minister of international trade & industry 10 may 2012 malaysia Islamic development bank (isdb) group investment forum: Recent ...
May 2012
... A presentation by: dato Sri mustapa mohamed minister of international trade & industry 10 may 2012 malaysia Islamic development bank (isdb) group investment forum: Recent economic ...
April 2012
... Transactions is clearly disproportionate to its relevance to actual trade flows. In contrast, for instance, the eu makes up twice as much of global trade as the us, but the eur is involved in half as much ...
March 2012
... Barriers to restrict trade, and a multiplication of regional trading agreements, trade continues to grow faster than global output. international trade is now worth around $5 trillion a year, which adds ...
March 2012
... Advisory services inc. (Sttas), which is affiliated with st&r, is recognized as the leading provider of customs and international trade advisory services to the public and private sectors. Sttas offers hands ...
March 2012
... Of higher volumes and prices. Exports of precious metals and alloys, organic chemicals as well as copper ores, concentrates and scrap led the sector S gain, on the strength of volumes. Exports of machinery ...
» Purchase Premium Reports
(From $ 100 - $ 800)
About 500 reports
- $ 1 000
- Industry report
- February 2012
- by Ibisworld
This is the replacement for IBISWorld's February Sound Recording Studios in Australia About this Market This market research report from IBISWorld provides a in-depth overview of the Sound Recording Studios ...
February 2012
$ 1 000
Building up: An upswing in housing investment will help revenue rebound from a downturn Building Supplies Wholesaling in Australia Companies in this market wholesale hardware and building materials, excluding ...
February 2012
$ 1 000
This is the replacement for IBISWorld's February Gold Ore Mining in Australia About this Market This market research report from IBISWorld provides a in-depth overview of the Gold Ore Mining in Australia ...
May 2012
$ 910
Short circuit: Demand for semiconductors will rise, but outsourcing trends will curb growth Semiconductor & Circuit Manufacturing in the US A rewired market This highly volatile and sensitive market ...
April 2012
$ 910
Fertile ground: Demand recovers from recessionary lows, but competition increases Fertilizer Manufacturing in the US Fertile ground: Fertilizers are primarily a commodity product, and prices are mainly ...
April 2012
$ 910
Revving up: As car sales improve, engine manufacturers will benefit from rising demand Automobile Engine & Parts Manufacturing in the US Technology sparks growth: Automobile engine manufacturers have ...
April 2012
$ 910
On the chopping block: Despite recent gains, revenue will decline through the coming years Kitchen Knife Manufacturing Slicing and dicing The Kitchen Knife Manufacturing has seen growth in recent years ...
