Import and Export of specific goods and products over international borders are termed as import or exports. These processes are generally involved in the business of importation and exportation of commodities between countries. The process of global trade is basically concerned with the movement of goods from one country to another country. There are three types of global trade namely importation, exportation and general trade. While each of these three may sound different, they are actually related to each other and flow in a similar direction.
Global trade mainly refers to the movement of goods from one country to another country. Imports are also referred to as exports. There are two types of flows i.e. direct and indirect. Direct flow is the one that involves the goods directly coming into the hands of the consumer. Indirect flows refer to the movement of products by means of transportations like pipelines, railroads and shipping vessels.
Today, the trend of globalization has seen the growth of numerous Multi-country market organizations. These organizations have become an important part of world trade. The growth of these market organizations has made it possible to export goods from all around the world. With the growth of these markets, it has become extremely easy for exporters to access the markets of other countries and bring their goods to the other countries. This aspect of globalization has provided a boost to the global economy and encouraged more businesses to expand their business globally.
Globalization has also provided a unique opportunity for developing nations to develop better infrastructures, improved infrastructure and an improved infrastructural base. This aspect of globalization has led to the emergence of world finance, which is a very important aspect of economic globalization. Today, developing nations are relying on finance from developed nations for growth and prosperity. In fact, finance has become an integral part of the overall process of globalization.
The emergence of finance as a critical factor of globalization has provided a new impetus to overcome the recent financial crisis. Although the current crisis cannot be classified as a global problem, it can be said to be a symptom of a global imbalance. Many economists feel that the present crisis was caused because of the imbalance in trade and has become a wake up call for the global community to revitalize its economy. If the recent economic slowdown continues, it will be difficult for developing nations to achieve the level of development they desire. On the contrary, if the current slowdown continues, it would lead to the emergence of new challenges and concerns such as a global imbalance, deflation, fiscal crises and interest rates.
Despite all these challenges, the past decade has proven that global trade has significantly contributed to the increase in world trade. There has been a marked increase in exports and imports and the global trade deficit reduced to less than three percent of the total value of exports. Moreover, due to the emergence of free trade areas in some countries, competition between countries has increased and there has been a push to liberalize the trade regime to allow entry of goods into the domestic market. In this light, the future of global trade seems to be bright and optimistic. As long as protectionism remains a political issue, the global trade will continue to flourish and help to meet the increasing needs of the world population.