What are the main factors affecting international trade ?

by Helen Lumia | post a comment

Any countries bilateral or multilateral trade affected by geographical position, natural resources, economic development level and political factors.

1. The geographical location. Mid-latitude moderate climate, coastal areas, the transportation is convenient, good for development of international trade. High-latitude climate cold, inland mountainous area traffic block, adverse to the development of international trade. Japan to "trading", it has to do with its island position. In addition, is advantageous to the development of bilateral trade between neighbors.

2. Natural resources. A country is rich in natural resource type and degree directly affect the country's international trade in primary products. Such as Zaire said as "Mid-Africa gem ", in the national export commodities, minerals (70% ~ 80%).

3. The level of economic development. Economic development level can directly affect a country's foreign trade commodity structure and the position in international trade. The United States, Japan and the European Union's national economic development level is high, the imports and exports accounted for half of the world and the population of the country accounts for only about 1/7 of the world. Developing countries relatively backward economy, foreign trade is relatively less.

4. Political factors. The world's political relations, the policy of a country also has a big impact to international trade. The gulf war after Iraq's oil exports plummeted, is due to political reasons. In China since the late 1970 s adopted a policy of opening to the outside world, foreign trade development quickly.

What are the main factors affecting international trade ?

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