Foreign trade definition

Foreign trade has a complex and broad definition because of this in the following article we are going to give you a very complete definition of the concept of foreign trade. Foreign trade or international trade as in some countries is called. Aimed at identifying new and innovative initiatives for exports to grow, increasing the proportion of value-added exports preferably in sectors that generate employment and taking advantage of new trade agreements and destination markets.

Differences between foreign trade and international trade

Foreign trade refers to the set of commercial transactions that are dedicated to exporting the products that are manufactured in one place to other countries and to import the products that are manufactured in other countries to sell them in here. On the other hand international trade is understood as an international exchange to the trade in goods and services between two or more parties from different countries (one exporter and the other importer).

Complete definition of foreign trade

Export trade and import of goods from a country with other countries. In the capitalist regime, the main objective of foreign trade lies in the desire of the capitalists and their associations to obtain high profits. In the capitalist countries, the development of foreign trade is conditioned by the disproportions that constantly arise in certain branches, by the increase in the production of goods beyond the relatively narrow limits of the internal market. Under imperialism, foreign trade becomes the arena of monopolies in their struggle for world markets and sources of raw materials, is used to subject economically and politically to colonial and dependent countries, to exploit the population of said countries

History of foreign trade

Foreign trade began to gain importance from the sixteenth century with the creation of European colonial empires, becomes an instrument of imperialist policy. A country was rich or poor depending on the amount of gold and silver it had, and other precious metals. The empire sought to obtain more wealth at a lower cost. During the seventeenth and eighteenth centuries the leaders discovered that promoting foreign trade increased the wealth and therefore the power of their country.

From 1868 and until 1913 Great Britain used the international monetary system, which was governed by the Gold standard. The countries under this system expressed their currency in a fixed amount of gold.