Replies (300 words total – 100 words minimum, per reply)
BUSI 604
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Additionally, you will reply to a minimum of 3 other classmates’ threads. Thus, you will have
submitted substantive written responses to a minimum of 3 other classmates’ threads.
What is Substantive Interaction?
The School of Business is committed to the collaborative learning model. In this course,
collaborative learning requires each student to read and spend time reflecting on other’s
postings, and then respond in a substantive manner to the postings of others. In composing
substantive responses, you can do several things, such as:
o compare/contrast the findings of others with your research;
o compare how the findings of others relate and add to the concepts learned in the
required readings; and/or
o share additional empirical knowledge regarding global business — or international
experiences you may have had — relative to the postings of others.
The collaborative learning model requires substantive interaction between students on a
weekly basis. Consider the Discussion as equivalent to being in a class, thus maintain
professional communication standards at all times (no “IM” shorthand or informal jargon,
please).
DISCUSSION POST: Key Term and Why You are Interested in It.
After reading the textbook and the list of key terms and concepts I have decided to conduct further research on the importance of international trade- maximizing production and efficiency, increasing market audience, and receiving foreign direct investment. I can attest to this term and concepts personally because I was once employed in the international letter of credit department, and I saw the importance front and center. Due to the fact that no nation on earth could live without foreign commerce, international trade is particularly significant. While they are all dependent on global commerce, the extent to which they are dependent varies. International trade raises the likelihood that a company’s decision will be the right one, increasing the likelihood of successful trading, if it is properly gathered and assessed.
Explanation of the Key Term
Write a paper on the International trade refers to the exchange of goods and services between countries. In simple words, it means the export and import of goods and services. Export means selling goods and services out of the country, while import means goods and services flowing into the country. Global events have an impact on pricing, demand, and supply in the world economy, which is supported by international commerce. For instance, the Indian software companies would be impacted by US visa policy changes for software personnel. Or, you could have to pay more for Chinese goods in the US if labor costs rise in exporting nations like China. (Borad, 2022)
Major Article Summary
The major article that I have chosen to summarize is titled “International Trade – Types, Importance, Advantages And Disadvantages.”
Export trade, import trade, and outlet trade are the three categories of international trade. Entrepot Trading, commonly referred to as Re-export, combines export and import trade. It entails bringing in products from one nation and then exporting them to another after adding value. When local demand cannot be met due to a lack of resources or capabilities, countries turn to foreign commerce. Therefore, a nation may use its internal resources to manufacture what it is skilled at by importing the necessary items. After then, the nation might sell the surplus on the global market. (Borad, 2022)
The competitiveness in a market is also increased by selling products and services there. It benefits both local suppliers and customers in a sense. Suppliers must make sure that their quality and pricing are competitive enough to stand up to competition from outside.
Technology is frequently transferred from a developed country to a developing country as a result of international commerce. The government of a developing country frequently sets conditions for international investors that include building up domestic industrial capabilities.
Jobs are also created in both nations as a result of increased foreign commerce. Large trade nations like the US, Japan, and South Korea enjoy reduced unemployment rates in large part because of this. Technology is frequently transferred from a developed country to a developing country as a result of international commerce. The government of a developing country frequently sets conditions for international investors that include building up domestic industrial capabilities. (Borad, 2022)
International commerce has benefits and drawbacks, but the benefits exceed the drawbacks by a wide margin. International commerce is now a necessity, yet for an economy to continue growing, a nation must maintain a good balance between imports and exports.
Discussion
a. The textbook addresses that during the final ten years of the twentieth century, globalization’s speed accelerated further. Nations have abolished or reduced obstacles to international commerce and investments in an effort to benefit from the new economic realities of the twenty-first century. (Satterlee, 2018) However, the referenced articles provide evidence that I extended my understanding of the importance of international trade. The importance of imports and exports is vital for the economy to keep flourishing and the contents of the assigned module discuss the globalization and culture of the international trade market. Trade-related nations and businesses are susceptible to world events. A negative occurrence could affect consumer demand for the goods and potentially result in job losses. (Borad, 2022)
b. The cited work related to the other 4 works I research is part of my evidence that has refined my research key term of the importance of international trade. International economic interactions are becoming more and more dependent on logistics and transportation. The Logistics Performance Index (LPI) examines regional variations in customs practices, logistics expenses, and the standard of the overland and marine transportation infrastructure. This article’s goal is to use a gravity model to analyze the effects that each of these factors has on trade in emerging economies. The significance that international shipments have come to hold further emphasizes the necessity for better freight and shipping services at affordable costs. To be able to participate in the intricate global commerce network, developing nations must make major advancements in the international trade market. (Martí et al., 2014)
