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Hello there, In this Padlet I will be explaining many of the wide variety of topics that are covered under International Trade via Videos, Articles and Images so I hope you learn something!

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Reflective Question #1: What did you learn about your topic that surprised you the most?

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Reflective Question #1: What did you learn about your topic that surprised you the most?

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I believe that the thing I learned about my topic that surprised me the most is how long we have actually been Internationally trading for. And I also find it really cool that countries that are unable to actually manufacture these goods are still able to access them via other countries.

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This image goes into detail of showing the actual process that the items that go through when countries are internationally trading. First it is prepared for exported, then it is actually exported to the transporter which is then prepared for importation, and finally it is then imported to the country.

I have chosen to include this image to show you what goes on and how much work it actually takes for countries to go through the international trade progress. One thing I learned myself was how much background checks and how many licenses are actually required to import goods.

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Website #1: Introduction to International trade

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Website #1: Introduction to International trade

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this article gives a quick overview of what international trade is. It explains the pros of international trade, like an increase in efficiency and  a larger selection of certain goods, and goes over some of the challenges that may come with international trade, such as trade imbalances and protectionism. The article also gives some information on the history of International trade and the role that some organizations cover, like the World Trade Organization in maintaining regular trade.

I have chosen this website because it is just a quick little summarizer of some of the wide range of topics and definitions of certain topics that is typically brought up when talking about international trade. It is a fairly easy read with explanations of definitions and pros/cons of the industry. One thing I did learn from this article was that England and Portugal both benefit from each other by specializing and trading according to each others comparative advantages.

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If you can walk into a supermarket and find Costa Rican bananas, Brazilian coffee, and a bottle of South African wine, you're experiencing the impacts of international trade.

International trade is the purchase and sale of goods and services by companies in different countries. Consumer goods, raw materials, food, and machinery all are bought and sold in the international marketplace.

International trade allows countries to expand their markets and access goods and services that otherwise may not have been available domestically. As a result of international trade, the market is more competitive. This ultimately results in more competitive pricing and brings a cheaper product home to the consumer.

Understanding International Trade

International trade was key to the rise of the global economy. In the global economy, supply and demand-and thus prices-both impact and are impacted by global events.

Political change in Asia, for example, could result in an increase in the cost of labor. This could increase the manufacturing costs for an American sneaker company that is based in Malaysia, which would then result in an increase in the price charged for a pair of sneakers that an American consumer might purchase at their local mall.

Imports and Exports

A product that is sold to the global market is called an export, and a product that is bought from the global market is an import. Imports and exports are accounted for in the current account section of a country's balance of payments.

Global trade allows wealthy countries to use their resources-for example, labor, technology, or capital -more efficiently. Different countries are endowed with different assets and natural resources: land, labor, capital, technology, etc.

This allows some countries to produce the same good more efficiently; in other words, more quickly and at a lower cost. Therefore, they may sell it more cheaply than other countries. If a country cannot efficiently produce an item, it can obtain it by trading with another country that can. This is known as specialization in international trade.

Comparative Advantage

For example, England and Portugal have historically been used, as far back as in Adam Smith's The Wealth of Nations, to illustrate how two countries can mutually benefit by specializing and trading according to their own comparative advantages. In such examples, Portugal is said to have plentiful vineyards and can make wine at a low cost, while England is able to more cheaply manufacture cloth given its pastures are full of sheep.

According to the theory of comparative advantage, each country would eventually recognize these facts and stop attempting to make the product that was more costly to generate domestically in favor of engaging in trade. Indeed, over time, England would likely stop producing wine, and Portugal stop manufacturing cloth. Both countries would realize that it was to their advantage to redirect their efforts at producing what they were relatively better at domestically and, instead, to trade with each other in order to acquire the other.

These two countries realized that they could produce more by focusing on those products for which they have a comparative advantage. In such a case, the Portuguese would begin to produce only wine, and the English only cotton.

Each country can now create a specialized output of 20 units per year and trade equal proportions of both products. As such, each country now has access to both products at lower costs. We can see then that for both countries, the opportunity cost of producing both products is greater than the cost of specializing.

Comparative advantage can contrast with absolute advantage. Absolute advantage leads to unambiguous gains from specialization and trade only in cases wherein each producer has an absolute advantage in producing some good.

If a producer lacked any absolute advantage, then they would never export anything. But we do see that countries without any clear absolute advantage do gain from trade because they have a comparative advantage.

Origins of Comparative Advantage

The theory of comparative advantage has been attributed to the English political economist David Ricardo. Comparative advantage is discussed in Ricardo's book On the Principles of Political Economy and Taxation, published in 1817, although it has been suggested that Ricardo's mentor, James Mill, likely originated the analysis and slipped it into Ricardo's book on the sly.

Comparative advantage, as we have shown above, famously showed how England and Portugal both benefit by specializing and trading according to their comparative advantages. In this case, Portugal was able to make wine at a low cost, while England was able to cheaply manufacture cloth. Ricardo predicted that each country would eventually recognize these facts and stop attempting to make the product that was more costly to generate.

A more contemporary example of comparative advantage is China's comparative advantage over the United States in the form of cheap labor. Chinese workers produce simple consumer goods at a much lower opportunity cost.

The comparative advantage for the U.S. is in specialized, capital-intensive labor. American workers produce sophisticated goods or investment opportunities at lower opportunity costs. Specializing and trading along these lines benefit each country.

The theory of comparative advantage helps to explain why protectionism has been traditionally unsuccessful. If a country removes itself from an international trade agreement, or if a government imposes tariffs, it may produce an immediate local benefit in the form of new jobs; however, this is rarely a long-term solution to a trade problem.

Eventually, that country will grow to be at a disadvantage relative to its neighbors: countries that were already better able to produce these items at a lower opportunity cost.

Criticisms of Comparative Advantage

Why doesn't the world have open trading between countries? When there is free trade, why do some countries remain poor at the expense of others? There are many reasons, but the most influential is something that economists call rent seeking. Rent seeking occurs when one group organizes and lobbies the government to protect its interests.

Say, for example, the producers of American shoes understand and agree with the free-trade argument but also know that cheaper foreign shoes would negatively impact their narrow interests. Even if laborers would be most productive by switching from making shoes to making computers, nobody in the shoe industry wants to lose their job or see profits decrease in the short run.

This desire could lead the shoemakers to lobby for special tax breaks for their products or extra duties (or even outright bans) on foreign footwear. Appeals to save American jobs and preserve a time-honored American craft abound-even though, in the long run, American laborers would be relatively less productive and American consumers relatively poorer as a result of such protectionist tactics.

Other Possible Benefits of Trading Globally

International trade not only results in increased efficiency but also allows countries to participate in a global economy, encouraging the opportunity for foreign direct investment (FDI). In theory, economies can thus grow more efficiently and become competitive economic participants more easily.

For the receiving government, FDI is a means by which foreign currency and expertise can enter the country. It raises employment levels and, theoretically, leads to a growth in the gross domestic product (GDP). For the investor, FDI offers company expansion and growth, which means higher revenues.

Free Trade vs. Protectionism

As with all theories, there are opposing views. International trade has two contrasting views regarding the level of control placed on trade between countries.

Free trade is the simpler of the two theories. This approach is also sometimes referred to as laissez-faire economics. With a laissez-faire approach, there are no restrictions on trade. The main idea is that supply and demand factors, operating on a global scale, will ensure that production happens efficiently. Therefore, nothing must be done to protect or promote trade and growth because market forces will do this automatically.

Protectionism

Protectionism holds that regulation of international trade is important to ensure that markets function properly. Advocates of this theory believe that market inefficiencies may hamper the benefits of international trade, and they aim to guide the market accordingly.

Protectionism exists in many different forms, but the most common are tariffs, subsidies, and quotas. These strategies attempt to correct any inefficiency in the international market.

As international trade opens up the opportunity for specialization, and thus more efficient use of resources, it has the potential to maximize a country's capacity to produce and acquire goods. Opponents of global free trade have argued, however, that international trade still allows for inefficiencies that leave developing nations compromised. What is certain is that the global economy is in a state of continual change. Thus, as it develops, so too must its participants.

What Are the Benefits of International Trade for a Business?

What Creates the Need for International Trade?

What Are Common Barriers to International Trade?

The Bottom Line

The world economies have become more intertwined through globalization and international trade is a major part of most economies. It provides consumers with a variety of options and increases competition so that businesses must produce cost-efficient and high-quality goods, benefiting these consumers.

Nations also benefit through international trade, focusing on producing the goods they have a comparative advantage in. Though some countries limit international trade through tariffs and quotas to protect domestic businesses, international trade has shown to benefit economies as a whole.

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What happens when the leading economies of the world interact?

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This video goes into depth on introducing to the viewer to International trade and how it works. It first demonstrates that it is much more complex than just the seller and buyer, and it shows the steps on what it takes to bring us our products which are product is sourced, assembled, packaged and sold in the different parts of the world. Further into the video it then covers topics like tariffs, comparative advantages, specialization, productivity and gross domestic product.

I chose this video to because it is a great starting point in teaching you the basic definitions of international trade and even how it works and how it began. The speaker speaks at a good and understandable pace and seems to be quite educated on the topic. This video showed me an interesting point by explaining that countries like Costa Rica excel in exporting pineapples, coffee etc. while countries like Germany tend to export more technology like cars and computers.

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Image #2: International Trade Connection

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Image #2: International Trade Connection

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This image is a great representation of how International trade actually works in the real world. You Can see all of the lines are connected in someway and they all lead to different areas of the world and sometimes it may only be a small connection but none the less they are still trading internationally.

I have chosen to use this as my other image because it is a nicely arranged image that shows that we are all getting different kinds of goods from many different countries. It was interesting to learn that us as Canada have many different countries that we actually trade with Internationally for lots of our goods.

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Reflective Question #2: Provide a real-life example of how this topic is relevant or interesting for you.

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Reflective Question #2: Provide a real-life example of how this topic is relevant or interesting for you.

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For me I feel like I would not be able to become as successful without the certain electronics we have for example Phones, Computers etc. and they are not made here so it definitely is relevant to me.

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Website #2: A political view on International trade

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Website #2: A political view on International trade

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this article talks about how International trade has evolved into a significant aspect of foreign policy. In addition it also covers that Countries are leveraging trade agreements to advance their economic interests and exert influence globally. The article also talks about how the US utilized the Trans-Pacific Partnership to strengthen its ties with Asia-Pacific nations, while China employed the Belt and Road Initiative to expand its economic clout. And lastly the website discusses how using trade as a foreign policy tool comes with risks and challenges, such as the potential for trade wars and the need to balance economic interests with other foreign policy priorities. Overall, international trade now forms a fundamental component of contemporary foreign policy strategies.

I have chosen to use this article as it is from a politicians stand point and how us as a country should be heavily incorporating International trade into our foreign policies. One thing I had learned in this article is that Canada recently introduced its new $2.3 billion strategy to centre focus on the decoupling of Canada and China.

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We need solid execution and follow through to keep us in the game and winning

Canada unveiled its new $2.3-billion Indo-Pacific Strategy at the end of November, and the immediate focus centred on the decoupling of Canada and China. It also brought with it the possibility of transformational investments across trade, investment, agriculture, defence and security in a region with 40 countries, including five major G20 economies (China, Japan, India, South Korea and Australia) with a combined GDP of US$29 trillion.

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Now it's time to focus on what's next.

The context

The regional strategy speaks to Canada's ambitions as a middle power, alongside commercial opportunities for the country's businesses. Canada's international trade policies and patterns - both current and proposed - reflect and drive our foreign policy agenda. The strategy's vision for increasing and diversifying trade in a region with 65 per cent of the world's population is as bold as it is necessary to ensure we succeed in highly competitive global markets.

The challenge

Growth in Canada is expected to slow in the second half of the year, according to the International Monetary Fund's (IMF) latest estimates released in October, registering 3.3 per cent on average in 2022 compared with July's forecast of 3.4 per cent. Growth for 2023 is predicted to come in at 1.5 per cent, down from an earlier forecast of 1.8 per cent. Meanwhile, with continued resolute monetary policy tightening, foreign exchange and interest rate volatility, inflation is expected to continue slowing, reaching the two per cent target by the end of 2024.

Moving forward, Canada needs a new international export and investment strategy that maps out its global trade and foreign direct investment (FDI) priorities. This must include an executable playbook on how to win the best export deals, attract FDI and capital investment, promote economic diversification and expand local non-oil exports.

The solution

The Golden State Warriors of the National Basketball Association epitomize how to cultivate and run a winning team built for both current and future success. The Warriors have won four championships in the past eight years by bringing in new leadership that understood how to win, designed a strategy, and then executed that strategy with top-tier talent. After a couple of tough years, the Warriors pivoted dramatically and are now the most valuable team in the NBA.

Canada can follow its example. Against competitors such as the United States, China, United Kingdom and Germany, it's unrealistic to assume that Canada can increase its exports to emerging markets and attract FDI if it simply runs a few plays, no matter how well designed. Instead, we need to be ready to adapt and employ a variety of trade, geopolitical, foreign policy and security considerations as we engage with both new and existing trading partners.

Below are some of the key plays to strengthen Canadian trade:

1. Put points on the board

A team can hold the ball longer than its opponent and have more big plays, but none of that matters if it doesn't score more points and win the game. We need more interchange assignments between government and industry. This includes emulating our competition by assigning a mix of leaders from the private sector to Canada's international trade portfolio, as well as multilateral development banks and international financial institutions such as the Asian Development Bank, among others.

2. Screen offence

Success or failure on the court is often a matter of making sure that players are in the right position to succeed before a play starts. Similarly, global trade and commercial diplomacy require a long-term view and approach that isn't based on quick wins. For instance, we need to be more aggressive and leverage more government-to-government arrangements with foreign buyers. This is a strategic procurement vehicle that can help secure more Canadian export deals in key sectors such as aerospace, agriculture, clean technology, defence, power, infrastructure and health care across the Americas, the Middle East, Sub-Saharan Africa, the Gulf Cooperation Council and Indo-Pacific markets.

3. Spend wisely, not blindly

To make a competitive leap, teams will often increase their payroll to sign the free agents needed to make a championship run. For Canadian companies to compete on an even playing field, we need to enhance trade creation tools like strategic pull strategies. That will help Canadian businesses take on foreign players operating with government-backed financing and terms and guarantees Canada simply can't match. Government participation in project or corporate lending and export financing facilities will help create trade opportunities for Canadian exporters with targeted foreign buyers.

For Canada to remain a resilient trading nation with influence on the world stage, we need to go on the offence to increase trade, investment and strengthen innovation collaboration with trusted partners. We also need a defence that is nimble and agile enough to counter nations presenting threats to our national security, infrastructure, economy, businesses and people.

Outlining a new international trade strategy will put Canada on the map. But we need solid execution and follow through to keep us in the game and winning.
Omar Allam is managing director and leader of Deloitte Canada's global trade and investment practice.

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Omar Allam: Why international trade is the new foreign policy

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We need solid execution and follow through to keep us in the game and winning Canada unveiled its new $2.3-billion Indo-Pacific Strategy at the end of November, and the immediate focus centred on the decoupling of Canada and China.

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Video #2: The Benefits of International trade

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Video #2: The Benefits of International trade

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This video is intended to cover some of the benefits out of International trade and how it has improved the quality of life around the world. The video first goes into detail explaining how some countries have benefited off of one another in the past, like the Romans when they first conquered Egypt they began to trade to south and into Africa, east into India and even north and west into Europe. One of the benefits of International trade is that some countries that are not able to grow certain fruits/vegetables are able to trade for valuables that they can produce that the other country might not have the ability to produce.

I have chosen to include this video because it goes into further detail than the first video and actually describes how us being able to trade internationally benefits us and other countries. This video brings light on how our countries can work together to provide people/families with items that may be essential to them that could naturally not be acquired in their home country.

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Video #3: The Disadvantages of International trade

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Video #3: The Disadvantages of International trade

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This video goes through some of the disadvantages/cons of International trade that could occur throughout countries. Some of the common disadvantages of International trade would be Exhausting natural resources, Political interference,  Foreign competition, price increase, Dependence and Over production.

I have chosen this video because as International trade can usually benefit us but as everything in the world is there is always disadvantages to things. So this video goes over a few cons that could occur while trading internationally. One thing I learned from this video is that international trade could actually cause political problems in between countries like for example if a country does not approve of the quality of products coming from the opposing country it could become a political problem.

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Video #4: International trade problems currently occuring

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Video #4: International trade problems currently occuring

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This video goes into detail in explaining a current world problem happening with the US dollar between China and India. essentially what happened between China and India is they have signed an agreement to completely scrap using the US dollar as their reserve currency which was basically the currency they were using to safely convert Chinese Yuan and Indian Rupees when making international trade deals.

I have chosen to include this video into my assignment because it is a prime example of some of the political drama or negatives that can occur in international trade in the world. The whole situation going on is one thing I learned from the video as I had no clue that something like this was even going on.

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It’s Over: China Just Broke The US Dollar

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Website #3: The History and Importance of International Trade

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Website #3: The History and Importance of International Trade

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this article provides a brief background of the history of international trade, It starts with talking about the exchanging of goods between neighbouring civilizations in ancient times, like the Silk Road between China and Europe. next the article discusses the role of colonization and imperialism in the process of shaping international trade, next it looks about the development of international trade organizations like the World Trade Organization. The article concludes with the current state of international trade, highlighting its importance in modern global commerce.

I have chosen to include this website as it provides the historical events of International trade and how it has come to evolve into the current International trade we know and use throughout the world. One thing I have learned from this article is that The Silk Road was the first big and important trade route that connected the east and west together and was used for over 2,000 years connecting Asia and Europe.

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We live in an age where international trade is a fact of life. You can order things from across the globe with the click of a button. However, for much of history, this was not the case.

International trade is a massive industry, and it's only growing. The history of international trade goes back thousands of years, but it took off in the modern era after the Industrial Revolution.

Just like in other areas of life, there have been considerable changes in how international trade is carried out. As business owners, we need to understand how our predecessors did things to adapt to the modern economic climate.

Let's find out!

How Did International Trade Start?

Trade history is long and exciting and has seen its share of ups and downs. Read ahead to find out more.

The Silk Road

International trade started in ancient times. The Silk Road was the first major trade route that connected the East and the West. It was an important trade route for over 2,000 years, connecting Asia with Europe via the Middle East.

The Silk Road began after the Han Dynasty (206 BC-220 AD) expanded its rule over Central Asia. This allowed Chinese people to travel to central Asia and start businesses there. The Silk Road was also known as "the road of silk" because it transported silk from China to Rome.

Mercantilism

Mercantilism was an economic theory in which a nation's wealth was measured by its gold reserves and net exports (exports minus imports). If a country sold more goods than it bought from other countries, it would have a positive balance of payments (BOP) and gain gold reserves.

World War I

World War I started in 1914 with the assassination of Archduke Franz Ferdinand in Sarajevo. This event led to all European powers entering the war on either side. After four years of fighting, Germany surrendered on November 11, 1918. World War I left many countries in ruins and resulted in an economic crisis known as the Great Depression that lasted until the start of World War II in 1939.

The Great Depression

After World War I came the Great Depression, caused by many factors, including overproduction, increased competition between companies, high tariffs on imported goods, and low export prices. All these factors led to lower demand for goods and services, resulting in unemployment rates hitting 25% in some places such as the USA and Canada. It took several years after the Great Depression ended before people started buying again because they feared losing their jobs again if they bought too much stuff.

Post-World War II

The post-World War II period saw a significant increase in international trade and an increasing number of countries joining the UN, which brought about more free trade agreements between member states.

This period also saw the creation of many multinational corporations (MNCs) that could produce goods cheaply thanks to economies of scale and mass production techniques. These MNCs controlled much of global trade and became extremely powerful entities in their own right.

This is because they could influence political decisions by lobbying governments, taking advantage of their power over consumers through advertising campaigns, or buying out competitors who threatened their market share.

Recent Trends

According to the World Bank, the global trade economy is expected to slow down.

The World Bank's latest report on global economic trends shows that economic growth has slowed across all regions of the world. The report predicts that this slowdown will continue over the next few years and advises investors to be cautious when making decisions about their investments and businesses.

The slowdown is being caused by several factors, including rising interest rates in some countries and changes in trade policies between countries. In addition, there are concerns about inflation as oil prices rise and commodity prices fall.

A slowing economy can lead to stagflation-a combination of high unemployment and high inflation-which could lead to further problems for consumers and businesses.

Trade Has Changed the Global Economy

Trade has changed the global economy, creating a new international political economy and forcing countries to rethink their economic policies.

Trade is the exchange of goods and services across international borders. It creates jobs, increases profits, and helps people improve their standard of living. Trade also enhances environmental quality because products made in other countries often use fewer natural resources than those made at home.

In a world where most countries have embraced free trade, changes in the global economy have been dramatic. The most significant change has been the rise of China as an economic power. Since 2001, China has been the world's leading exporter of goods and services. By 2025, it may be one of the world's largest economies.

How ATI Can Help You Write a New Chapter in History

American Trading International (ATI) is here for you when you are ready to take your business global. We're a full-service export partner with a team of international experts representing hundreds of US brands and manufacturers internationally.

We know how important it is to get your products into the right hands at the right time, so we work closely with you to develop the best plan for your business goals and budget. Whether you're looking to expand into new markets or simply want to increase sales in existing ones, we can help you find success wherever you go!
References:

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A Brief History of International Trade and Its Importance Today | ATI News

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We live in an age where international trade is a fact of life. You can order things from across the globe with the click of a button. However, for much of history, this was not the case. International trade is a massive industry, and it's only growing.

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Reflective Question #3: If you could pass on your knowledge to a family member or friend, what do you think is the most important thing to pass on?

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Reflective Question #3: If you could pass on your knowledge to a family member or friend, what do you think is the most important thing to pass on?

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I think the most important thing to pass on to someone with my knowledge on this topic would be to take everything we have that has been sourced from these countries for granted because if it weren't for them we would not have access to a lot of things that we use on a day to day lifestyle.

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This article goes into detail describing that Canada's Minister of Small Business, Export Promotion, and International Trade, Mary Ng, never considered resigning or repaying money after a recent ethics breach. It then goes into how the The Ethics Commissioner found that Ng's office did not properly award a contract to a charity that employed her husband. Next it explains that Ng apologized for the incident and said she took full responsibility for the mistake, but did not believe it was serious enough to warrant her resignation or the repaying of any missing funds. The article also discusses the broader issue of ethical concerns within the Canadian government and the need for greater transparency and accountability.

I have decided to include this article as one of my chosen articles because it is a fairly recent story from March 12th and shows the controversy that our own minister of International trade Mary Ng faced after breaching ethics and completely refused to pay back any funds that may have been missing. The whole article was completely new to me and did not know that this was even going on in our own country.

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Trade Minister Mary Ng did not consider resigning, repaying money after ethics breach

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Canada's minister for international trade says she never considered resigning after the federal ethics commissioner found she broke rules by awarding a contract to a friend.