5 International Trade Destinations You Need To Know

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 The intended population may be between individuals (individuals and individuals), between individuals and the government of a country or the government of a country and the government of another country. In many countries, international trade is one of the main factors for increasing GDP (Gross Domestic Product). Although international trade has been happening for thousands of years, its impact on economic, social and political interests has only been felt in the last few centuries. The five goals of international trade are as follows.

Increase the country’s foreign exchange

With the differences owned by one country with another country then as a country that exports goods to other countries, the aim is to increase the country’s foreign exchange. If we can increase the country’s foreign exchange, the impact from it is.

a. Economic growth
Economic growth is the increase in the gross national product of income in a country. Gross National Product (GDP) is usually produced by factors of production belonging to citizens both living in the country and abroad, a citizen is not included even though he lives in the country.

b. Affects the price stability of exported goods
Price stability here is to maintain prices carried out by the government when the inflation rate starts high. Inflation is an increase in the money supply, causing an increase in prices. So in this case the government is tasked with continuing to stabilize prices amid rising inflation with exports carried out by the country itself.

c. The existence of labor
The existence of labor is very necessary because there are workers who are actors who carry out all actions that are mutually sustainable. With economic growth, exporting companies will be flooded with product orders, so that the existing workforce is unable to do everything, so new recruitment of workers is needed to complete very large export orders. This is very beneficial to each other.

Meeting the Needs Existing in Other Countries

With the differences that are owned by one country with another country, then as a country that imports goods from other countries, the aim is to meet the needs that exist in other countries, but not in production in their own country.

Receive Internal & External Benefits

It is undeniable that trading activities are for profit. The benefits sought are not only internal benefits but also external benefits. Internal profits are profits owned by the company itself, for example profits through the number of orders from abroad which can increase company exports. The profits obtained by the company can be used to improve production equipment and to add facilities needed in the company to meet production needs. The next advantage is the external benefit, in this case the external benefit is the advantage of specialization. The advantage of specialization is the profit due to the function in enhancing the efficiency of the use of production factors.

Expanding the Market

In the production process, sometimes companies do not run their machines (production tools) to the maximum because they avoid the occurrence of excess production. Why was that avoided? Because if the resulting production is excessive it will cause a decrease in the price of their products. Therefore international trade aims to make companies and entrepreneurs able to run their machines to the fullest without worrying about excess production because the excess products can be sold abroad. This also causes the opening of various markets that can accommodate these production goods.

Modern Technology Transfer

In international trade we not only benefit materially but also in terms of modern technology. With the development of the times, developed countries will certainly provide new innovations by creating regeneration of old technology with new technology to increase effectiveness and efficiency in the production process.

Basically, international trade has the goal of obtaining benefits for both parties. In running a good international trade, of course, companies need financial statements that are well detailed. Now, you can easily create financial reports using accounting software. Journal is an online accounting software that you can use to make financial reports easily, quickly.

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