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Thursday, December 22, 2011

Differences between foreign trade and domestic trade

Of the most important aspects of the differences between foreign trade and domestic trade is ............
Different legislation and laws regulating the exchange in each country
As the national goods and services have full freedom of movement within the borders of the state while he was subject to the movement of foreign goods and services from outside to within the borders of the state to a set of restrictions under the name of trade policy is most famous of these restrictions charging customs taxSol and the need in some cases, permission by an official to allow the importation and setting conditions on the quality and quantity of the imported commodity is, it is clear that the application of certain trade policy achieved the national interest at the expense of the interests of other countries


       
Mobility of production factors for
As the conventional economic theory has 4 elements key part in the production process, namely capital, labor, land and the organization and are moving production elements easily within the borders of the state in light of the availability of the conditions of perfect competition, guided by the locations achieved the highest net return separately within this State if the consideration of economic priority indecision-making processEither in the scope of foreign trade, there is a limitation of legislative, technical, social and political elements hinder the free movement of production between countries as a result of the ability of the different elements of production to move between states that within a single stateBut exceptions were in the back of labor migration from Britain to the territory of the New World and the movement of capital, investments and developments in modern production elements led to the emergence of component technology to
Different currencies at the exchange deal for the local counterpart to the level of international economic transactions
As the national currency is used within the State where it is accepted compulsory in the implementation of economic transactions of Interior, while he was outside the state are transactions using gold or any foreign currency received accept-year-hence the foreign exchange market to determine the exchange rate of foreign currency through the interaction between supply and the demand for currency
Separation of markets

Show the phenomenon of the separation of marketsDue to external factors of the most important ...........
Natural limitations, Which is represented in the spatial and geographical dimension, which shows the influence of high prices, the total cost of the commodityDifferent customs and traditions between the countries and someFinally, language differences
Administrative restrictions
The restrictions associated with the political climate of the relationship between States and also the imposition of customs duties and foreign exchange controls

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