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Tuesday, November 29, 2011

Foreign trade and international specialization

There is a reciprocal relationship between foreign trade andinternational specialization as related to foreign tradeclosely linked to the phenomenon of international specialization and division of labor at the international levelwhere the said economists Classic on the phenomenon ofthe link where they decide that an individual if majoring inperformance of the work of one so good and brings adegree of skills inevitably will increase productivity and thenget at the highest level of economic well-being must bespecialized in producing countries of certain types of goods and services with high efficiency of production

Noticeable
There are many reasons, including the internationalspecialization .........

The different natural conditions
Performed where the different natural conditions in each country to specialization in the production of some raw materials and intermediate goods and final goods of agricultural and industrial

The abundance and scarcity of production elements
Especially racial labor and capital as the most importantcomponents of the production

Transportation costs
As costs of transporting a commodity affect the extent of the market for this item

Finally, the availability of modern technology
Modern technology is important in our times Countries thathave available modern technology can produce goods orcapital goods production.

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