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Economic Agents and International Trade, image, image, image, image, image…
Economic Agents and International Trade
International Trade is exchanging products or services between two countries across borders or territories.
Main Objective
Standard international trade models universally consider maximizing the availability of inexpensive products as the objective of international trade.
Types
Export Trade
Export trade means selling products and services out of the country to other countries.
Import Trade
Import trade means buying products and services from other countries to our country.
Entrepot Trade
Entrepot trade is a combination of export and import trade and is also known as Re-export. It means importing goods from one country and exporting it to another country after adding some value to it.
Benefit
Greater variety of goods available for the country.
International trade enables to consume things that can't be produced within it's own country. That is why we can consume a variety of things because it's not from one country, it's from a lot of countries.
Cheaper goods
If a country can't produce something than they have to import stuff from other countries which makes the product cheaper.
More Employment
Other people from other countries can buy our products and our products can run out, which means that we have to produce more stuff. In order to do that, we need more people to help and because of that more people can work.
Economic Agents
Households
Producers
Household producer is a business developed by an individual or a group of people to produce goods or services that are the needs of life for the community.
Consumers
Household consumer is a group of people who use the services or goods produced by the producers to fill each other needs.
Firms
Firms is divided into private groups and government owned. This happens because a company is an economic organization with legal status, so the business they run is permanent and sustainable.
Role of firms is produce goods or services that are the necessities of life for the community. The output of this production is of course not only intended for households, but also for the government.
Goverments
Producers
The government provides services or produces goods that are later used to meet community needs. For example, BUMN processes petroleum to provide vehicle fuel supplies for the community. This proves that the government has a role as producers.
Consumers
The government certainly needs a supply of goods or services produced by producers. For example, when the government wants to improve national defense, they will buy weapons or war equipment produced by the combat equipment manufacturers. This proves that the government has a role as consumers.
Economic policymakers
The government has a duty as a policy regulator. For example, one of the government's efforts to regulate community economic activities is to issue several regulations
Central Banks
Central banks is a place to collect funds obtained from companies or households.
Community Abroad
There are countries whose human resources are so superior, but they lack natural resources or production materials.
Because of that people come visit other countries, if they come then they can act as producers, consumers, experts, or even investors for a country.
Links
Main Objectives of International trade
Types of international trade
Benefits of international trade
Economic agents
