Category Archives: Economics

Contribution of Economics in World Trade

Food and water are very essential part of life. They are the main basic requirements for a man’s continued existence. Water as we all know comes from different sources like rain, ocean, rivers, lakes, ponds, etc. But as far as food is concerned it needs either to be grown or searched for. Man has to put forth his effort in order to grow or search food for satisfying his daily requirements. Man always hunted for something more or extra for himself. International trade is just a consequence or result of such a hunt. World trade concept is basically a new thinking and a new beginning. Industrial revolution can be considered to be a basis for the international trade. There was a swift spread out of international trade subsequent to industrial revolution. Industrial revolution brought countries together and hence various countries felt the requirement of acquiring foodstuffs from new countries. Thus world trade grew very fast. The spreading out of world trade was actually a beginning for realizing the importance of economics.

People who were occupied with international import and export were forced to have much knowledge about economics in order to make their trade more easy and comfortable. In the world of today the subject of economics has gained much importance and a person dealing with trade and commerce need to have much information of this subject. Economics help them in trading. Without much knowledge in economics one would find it difficult to handle a national or international trade. In almost all over the world the subject of economics is given much significance and people are being educated in this regard. World trade cannot go without economics as it makes the trading easy and more convenient. A combined study of economics and geography proves that the physical and the biological conditions of various countries do not support all kinds of products on their land. Some countries may be able to produce man made goods, some may be abundant with mineral resources and some others may be best in producing foodstuffs. Some countries would not be able to produce much food products due to less supporting physical and biological condition of that country. But in current world the countries have realized the importance of involving themselves in world trade. There are many advantages in this regard. Countries are able to make themselves sufficient with those products which they are deficient with. A country may be abundant with different resources. But through economics they have understood that giving more priority to some of the produce would economically benefit their country. Each country is a manufacturer of one product or the other. They are not only producing the products but are concentrating in producing such stuffs in abundance so that exporting can be done which can really grow their economic status. There are countries which are unable to produce certain products but are in high need of it. In such cases world trade opens gate of importing. Through importing such countries can fulfill their requirements. Thus world trade has led to the opening of importing and exporting of products. When there are chances of war some kind of inconveniences occurs among various countries due to lack of interactions. But even in such conditions importing and exporting among countries are not much hindered as there are many ways for evading such situations. In this world of today wars are not as common as it used to be once.

There are various benefits which forces countries to bind themselves with world trade. In the present world the study of economics is very essential as it discloses the importance of world trade. Hence one can really say that studies of Economics could make a great contribution to the extension of world trade.

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