International trade is a trade between two or more countries through import and export of raw materials, processed and finished products as well as services through an export import marketplace. International trade began as a result of one country having comparative advantages over another for some raw materials, products and services. Since every country is blessed with at least one natural or mineral resources as well as human resources and capital resources it became pertinent to either export what they have in excess and on the other hand import what they lack or have in little quantities and qualities. As a result of the sufficiency and deficiency of resources exchange is made for economic sustainability through bilateral trade relations which generates foreign exchange for such countries.
International trade being trade among nations is based on the laws of absolute advantage and comparative advantage as put forward by an English classical Economist named David Ricardo. According to these laws, if two different countries say country X and country Y can produce say agricultural products and agricultural equipment and machinery but it happens that country X can produce more of both agricultural produce as well as agricultural machinery and equipment than country Y, then country X can be said to have an absolute advantage in the production of both agriculture products and agriculture equipment and machinery. However, if it happens that country X can produce more agriculture products while country Y can produce more agriculture equipment and machinery, then country X can be said to have a relative advantage or comparative advantage over country Y in the production of agro products while country Y has comparative advantage in the production of equipment and machinery for agriculture over country X. If conditions are more favourable for country X then country X will use virtually all its resources in the production of agro produce and so become specialized in agriculture products production. Also, if conditions are remain favourable for country Y then country Y will use all its resources in the production of machinery and equipment for agriculture and so eventually become specialized in agriculture equipment and machinery manufacturing. From the ongoing, if country X that has comparative advantage in agricultural products need agricultural equipment and machinery for which country Y has comparative advantage yet need agriculture products, then both countries will be involved in international trade such that country X will export agriculture products to country Y and import agriculture equipment and machinery from country Y and vice-versa. Thus, comparative advantage forms the basis for international trade through bilateral trade relationships or multilateral trade relationships among nations such that this theory gives way to what is referred to as free trade as no tariffs are permitted to ensure that more trade will take place. However, some countries are protective of their resources and so they establish tariff barriers which generates revenue too.
In 1946, the World Bank and International Monetary Fund (IMF) were instituted to ensure international world order and so all independent Western countries are signatories to these institutions that enable them to abide by the laws and regulations that were established in 1946. In 1947, the General Agreement on Tariffs and Trade (GATT) was established but modified in 1994 which was designed to promote world trade by reducing tariffs and other international trade barriers. In 1995, the World Trade Organization (WTO) was establish to replace the General Agreement on Tariffs and Trade. The World Trade Organization apart from promoting world trade by reducing tariffs and other international trade barriers is also known to impose international trade sanctions and mediates global trade disputes.
Agriculture International Trade: Agriculture Export and Agriculture Import by Agriculture Exporters and Agriculture Importers; Agriculture Chemicals Export and Agriculture Chemical Import by Agriculture Chemical Exporters and Agriculture Chemical Importers; Agriculture Equipment and Machinery Export and Agriculture Equipment and Machinery Import by Agriculture Equipment and Machinery Exporters and Agriculture Equipment and Machinery Importers.
International agriculture trade involves agriculture export and agriculture import by agriculture exporters and agriculture importers. Agriculture international trade within the agriculture sector includes the export of agriculture products (agriculture products export by agriculture product exporters), import of agriculture products (agriculture products import by agriculture product importers), export of agriculture equipment (agriculture equipment export by agriculture equipment exporters), import of agriculture equipment (agriculture equipment import by agriculture equipment importers), export of agriculture machinery (agriculture machinery export by agriculture machinery exporters), import of agriculture machinery (agriculture machinery import by agriculture machinery importers), export of agriculture chemicals (agriculture chemicals export by agriculture chemical exporters) and import of agriculture chemicals (agriculture chemicals import by agriculture chemical importers). Agrochemicals that can be exported and imported includes fertilizers, pesticides, herbicides, etc.
Oil and Gas International Trade: Oil and Gas Export and Oil and Gas Import by Oil and Gas Exporters and Oil and Gas Importers; Oil and Gas Product Export and Oil and Gas Product Import by Oil and Gas Product Exporters and Oil and Gas Product Importers; Oil and Gas Equipment and Machinery Export and Oil and Gas Equipment and Machinery Import by Oil and Gas Equipment and Machinery Exporters and Oil and Gas Equipment and Machinery Importers.
Not all countries are endowed with oil and gas yet all countries make use of oil and gas and oil and gas products directly or indirectly. Crude oil or petroleum and natural gas are very important since they are sources of energy.
International oil and gas trade involves oil and gas export and oil and gas import by oil and gas exporters and oil and gas importers. Oil and gas international trade within the oil and gas industry includes crude oil export by crude oil exporters or petroleum export by petroleum exporters , crude oil import by crude oil importers or petroleum import by petroleum importers, gas export by gas exporters, gas import by gas importers, petroleum products export by petroleum products exporters. Oil and gas products export by oil and gas products exporters as well as oil and gas products import by oil and gas products importers. International oil and gas trade within the oil and gas sector also includes oil and gas equipment export by oil and gas equipment exporters, oil and gas equipment import by oil and gas equipment importers, oil and gas machinery export by oil and gas machinery exporters, oil and gas machinery import by oil and gas machinery importers. It is important to know that export of crude oil (export of petroleum), import of crude oil (import of petroleum), export of petroleum products, import of petroleum products or simply put, export of oil and gas products, import of oil and gas products, export of oil and gas equipment and machinery or import of oil and gas equipment and machinery are good sources of revenue for exporters and importers.
Petrochemical International Trade: Petrochemical Export and Petrochemical Import by Petrochemical Exporters and Petrochemical Importers; Petrochemical Derivatives Export and Petrochemical Derivatives Import by Petrochemical Derivative Exporters and Petrochemical Derivative Importers; Petrochemical Equipment and Machinery Export and Petrochemical Equipment and Machinery Import by Petrochemical Equipment and Machinery Exporters and Petrochemical Equipment and Machinery Importers.
Petrochemicals and petrochemical derivatives as well as petrochemical equipment and petrochemical machinery are traded internationally such that countries that have well developed petrochemical industries export petrochemicals and their derivatives. Petrochemical export by petrochemical exporters, petrochemical import by petrochemical importers, petrochemical derivative export by petrochemical derivative exporters, petrochemical derivative import by petrochemical derivative importers, petrochemical equipment export by petrochemical equipment exporters, petrochemical machinery export by petrochemical machinery exporters and petrochemical machinery import by petrochemical machinery importers which when successful are good sources of revenue to exporters and importers in petrochemical sectors.
Mineral Trade International Trade: Mineral Export and Mineral Import by Mineral Exporters and Mineral Importers; Mining Equipment and Machinery Export and Mining Equipment Import by Mining Equipment and Machinery Exporters and Mining Equipment and Machinery Importers.
Minerals are obtained by mining using various mining equipment and mining machinery. Minerals are needed as raw materials within mining industries for the production of products containing minerals. International mineral trade involves mineral export by mineral exporters, mineral import by mineral importers, mineral equipment export by mineral equipment exporters, mineral equipment import by mineral equipment importers, mineral machinery export by mineral machinery exporters, mineral machinery import by mineral machinery importers or mining equipment export by mining equipment exporters, mining equipment import by mining equipment importers, mining machinery export by mining machinery exporters, mining machinery import by mining machinery importers. The export and import by exporters and importers in mining sectors or mineral sectors are good sources of revenue.
Gemstone International Trade: Gemstone Export and Gemstone Import by Gemstone Exporters and Gemstone Importers; Gemstone Equipment and Machinery Export and Gemstone Equipment and Machinery Import by Gemstone Equipment and Machinery Exporters and Gemstone Equipment and Machinery Importers.
Gemstones are used in making gems and other products that use gemstones as raw materials for their production. Gemstones are typical minerals. The demand for gemstones for production process is one of the driving forces for international mineral trade. International gemstone trade involves gemstone export by gemstone exporters, gemstone import by gemstone importers, gemstone equipment export by gemstone equipment exporters, gemstone equipment import by gemstone equipment importers, gemstone machinery export by gemstone machinery exporters, gemstone machinery import by gemstone machinery importers. Since gemstones are minerals mining equipment and mining machinery for minerals are useful in obtaining gemstones. The export and import by exporters and importers in mining sectors or gemstone sectors are good sources of revenue.
Metal International Trade: Metal Export and Metal Import by Metal Exporters and Metal Importers; Metal Equipment and Machinery Export and Metal Equipment and Machinery Import by Metal Equipment and Machinery Exporters and Metal Equipment and Machinery Importers.
The international trade of metals involves the export of metals by exporters of metals and import of metals by importers of metals. Metals are obtained using different metal equipment and metal machinery which are often referred to as metallurgical equipment and metallurgical machinery respectively in metal industries otherwise called metallurgical industries. Metals are extracted from their ores and then purified for use in further production of various products requiring metals as raw materials. Metal export by metal exporters, metal import by metal importers, metal equipment export by metal equipment exporters, metal machinery export by metal machinery exporters, metal machinery import by metal machinery importers are sources of revenue for exporters and importers in metal sectors or metallurgical sectors.
Alloy International Trade: Alloy Export and Alloy Import by Alloy Exporters and Alloy Importers; Alloy Equipment and Machinery Export and Alloy Equipment and Machinery Import by Alloy Equipment and Machinery Exporters and Alloy Equipment and Machinery Importers.
The international trade of alloy involves the export of alloys by exporters of alloys and import of alloys by importers of alloys. Alloys are obtained using different alloy equipment and alloy machinery which involves combining at least a metal and a non-metal in alloy industries. Alloys are used in production of various products requiring alloys as raw materials. Alloy export by alloy exporters, alloy import by alloy importers, alloy equipment export by alloy equipment exporters, alloy machinery export by alloy machinery exporters, alloy machinery import by alloy machinery importers are sources of revenue for exporters and importers in alloy sectors.
Energy International Trade: Energy Export and Energy Import by Energy Exporters and Energy Importers
Just as the power industry depends on the energy industry so also are other industries dependent on energy industry directly or indirectly and so energy industries and power industries are known to be very useful to virtually all other industries. The energy industry comprises of the renewable energy industry and non-renewable energy industry. Since some countries are more technologically advanced in the energy sectors, this form the basis for energy international trade. Energy international trade involves the export and import of energy-derived products which includes equipment and machinery for generating energy. These energy products, energy equipment and energy machinery are traded globally between their producers and consumers through exporters and importers in the energy industries such as renewable energy export by renewable exporters, renewable energy import by renewable energy importers, non-renewable energy export by non-renewable energy exporters and non-renewable energy import by non-renewable energy importers. Energy export by energy exporters includes energy product export by energy product exporters, energy equipment export by energy equipment exporters and energy machinery export by energy machinery exporters.
Energy import by energy importers includes energy product import by energy product importers, energy equipment import by energy equipment importers and energy machinery import by energy machinery exporters. Due to changes in climate and negative effect on the environment there is now a global call for nations to embrace green energy or clean energy which is renewable energy such as solar energy or solar power, biofuels, wind energy, etc whose products, equipment and machinery are exported and imported. The nonrenewable energy products, equipment and machinery imported and exported are fossil fuels such as oil and gas and coal as well as nuclear energy.
In summary, International trade is driven by the laws of absolute advantage and comparative advantage but with more emphasis on comparative advantage. Contextually, this article focused on international agriculture trade, international oil and gas trade, international petrochemical trade, international mineral trade, international gemstone trade, international metal trade, international alloy trade and international energy trade.
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