Awdhesh Singh is teaching live on Unacademy Plus
Importance of International Trade Dr Awdhesh Singh, Director, Awdhesh Academy Former Commissioner, Customs and Indirect Taxes
-B Tech from IIT-BHU Varanasi, M Tech from IIT- Delhi &PhD IIITM-Gwalior in 2008 Joined IRS (C&IT) in 1991. . Received WCO Certificate of Merit in 2011 and Presidential Award from Government of India in 2016 Took VRS in October 2016 in the rank of Commissioner Fifth Most Followed Writer on Quora in the world with over 2.5 lakhs followers and over 115 Million Answer views Authored four bestselling books on the topic o Spiritual Intelligence Leadership, Myths, and GST. Books on 'Ethics, Integrity and Aptitude' and '31 Director, Awdhesh Academy Ways to Happiness' is expected soon . Follow Me @ unacademy.in/user/aksinghirs AwdheshSingh.com
Introduction .International Trade is the exchange of goods or services along international borders. International trade allows for a greater competition and more competitive pricing in the market. .The competition results in more affordable products for the consumer. The exchange of goods also affects the economy of the world as dictated by supply and demand, making goods and services obtainable which may not otherwise be available to consumers globally.
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Benefits of International Trade 1.Greater Variety of Goods Available for Consumption: You have a 2.Efficient Allocation and Better Utilization of Resources: Countries 3.Promotes Efficiency in Production: Countries that can produce a large market to choose your goods tend to produce goods in which they have a comparative advantage. product at the lowest possible cost will be able to gain larger share in the market. 4.Employment Generation: 1. The market for the countries' goods widens 2. The establishment of newer industries 5. Specialisation: Foreign trade leads to specialisation and encourages production of different goods in different countries.
Benefits (continues) 6.Consumption at Cheaper Cost: due to availability of 7.Reduces Trade Fluctuations: due to increase in the size of 8.Utilization of Surplus Produce: Sell your product to the 9.Fosters Peace and Goodwill: Economic interdependence of imported goods market countries where there is a shortfall countries often leads to close cultural relationship and thus avoid war between them 10lmportant Source of Revenue: Countries can earn Customs duties on export and import of goods and services
Disadvantage of International Trade 1. Impediment in the development of home industries 2. Economic dependence of underdeveloped countries on developed nation leading to exploitation 3. Political dependence 4. Misutilisation of Natural Resources due to excessive exports, the natural resources may be exhausted in a shorter span of time 5. Import of Harmful Goods like spurious drugs, luxury articles 6.Shortage of goods in local market due to export of essential commodities like onions and other agricultural produce
Foreign Trade in India Foreign trade has played a crucial role in India's economy and its growth . The composition and direction of foreign trade has undergone substantial changes particularly after the liberalization process which began in early 1990's. .India is now a major player in global trading systems and all the major sectors of Indian economy are linked to the world outside either directly or indirectly through international trade.
Top 15 Commodities of Import PETROLEUM: CRUDE GOLD OTHER COMMODITIES 1.27 PETROLEUM PRODUCTS PEARL, PRECS, SEMIPRECS STONES 132 :57-151 2 25.37 COAL,COKE AND BRIQUITTES ETC TELECOM INSTRUMENTS .72 2.15 3.11 2.59 ORGANIC CHEMICALS IRON AND STEEL PLASTIC RAW MATERIALS VEGETABLE OILS 71 4.98 INDL. MACHNRY FOR 6.91 DAIRY ETC COMPUTER HARDWARE, PERIPHERALS BULK MINERALS AND ORES FERTILEZERS MANUFACTURED 5.18 6.68 Source: DGCI&S, Kolkata
PETROLEUM PRODUCTS PEARL, PRECS, SEMIPRECS STONES GOLD AND OTH PRECS METL JWLERY DRUG FORMULATIONS BIOLOGICALS 1.66 :55-1.46 1.68 1.86 20.68 1.75 2.07 1.76 IRON AND STEEL RMG COTTON INCL 2.32 ACCESSORIES PRODUCTS OF IRON AND STEEL MOTOR VEHICLE/CARS 2.83 MARINE PRODUCTS 2.84 ORGANIC CHEMICALS COTTON FABRICS, MADEUPS 3.56 ETC. MANMADE YARN,FABRICS,MADEUPS 8.11 4.16 11 SHIP, BOAT AND FLOATING STRUCT AIRCRAFT, SPACECRAFT AND Fig. Top 15 Commodities %share in Export 2013-14 INDL. MACHNRY FOR DAIRY ETC Source: DGCI&S, Kolkata
1.08 0.92 1) Europe 2) Africa 3) America 4) Asia 17.82 11.17 5) CIS & Baltics 6) Unspecified Region 19.79 Export by Region India 2013-2014 %Share Source: DGCI&S, Kolkata