International trade

  International trade play an important role to the economic development of the country and even the world that participate in.

1.Adjust the relation between supply and demand national markets

     Adjust the relation between supply and demand national markets, exchange is always the most important function of international trade. The countries all over the world by a production level, science and technology and production factors distribution condition the influence of factors, the production capability and market supply and demand there exists a certain degree of difference. National existing product shortage of supply, and there are all kinds of products in excess. And through the international trade not only can increase domestic shortage of supply products market, meet the needs of the consumers, but also for all the domestic market of the excess products provide a new way, and, to some extent, easing of market supply and demand contradiction, which regulates the relation between market supply and demand of all countries.

2. Make full use of production elements

    In the current world, labor, capital, land, technology and other production elements in each country's distribution is uneven often, some countries surplus labor and capital shortage, some countries abundant capital and land shortage, some countries are vast land and farming backward in technology. If there is no international trade, these countries domestic production scale and the development of the social productive forces, are the shortage of the production elements of the restriction, and part of the factors of production will be idle or waste, production potential of not play. Through the international trade, these countries can take international service trade, capital transfer, land lease, technology trade and other methods, the domestic surplus production elements and other national exchange shortages at home production elements, so that the shortage of production factors restricting to relieve or eliminate, able to make full use of surplus production factors, expand production scale, speed up the economic development.

 3. Play the comparative advantage, improve production efficiency countries participate in international trade is an important basis of comparative advantage and comparative advantage

     The use of comparative interests and the comparative advantages of the international division of labor and international trade, can expand advantage commodity production, and narrow disadvantage commodity production, and export advantage from abroad in exchange for their products in the disadvantages of goods, which can be in the same social productive forces under the premise of improving the efficiency of production factors, improve the production efficiency and gain greater economic benefits.

4. Improve production technology level, domestic industrial structure optimization.

    In today's world, all countries through the international trade to introduce the advanced science and technology and equipment, in order to improve the productivity of domestic level, to speed up the economic development. At the same time, through the international trade, domestic industrial structure of coordination and improve gradually, and to promote the harmonious development of the whole national economy.

5. Increase the fiscal revenue, improving national welfare level the development of international trade, but for a government opened up the financial revenue source

   The government from the past the customs territory of the goods, the tariffs of import and export goods shall domestic tax, for transit goods offer all kinds of services for large financial income. The federal government in the United States was an income once dominated the federal financial tariffs on 90% of revenue. So far, tariffs and foreign tax is still some countries, especially developing countries an important source of revenue. International trade can also improve the welfare of the national level. It can through the import shortages at home and domestic urgent need of the goods, or import goods more cheaply than domestic price, quality is better, more innovative style, features more outstanding goods, to make domestic consumer get more benefits. In addition, the expansion of international trade, especially labor-intensive products export growth, for the domestic will provide more employment opportunities, and indirect promote the welfare.

 6. Strengthening economic ties between countries, and promote economic development.

    In modern times, the countries all over the world and extensive international trade activities, this not only the productive forces development level is higher in developed countries, link up with each other, and the low level of productivity development of developing countries involved in international economic life. The competition of the international market activity, also make the world overall productivity development further speed up. This will not only promote the further development of the economy in developed countries, but also promote the developed countries and the area economic development.

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