International Trade Case Study

On this assignment I will be writing an essay for feet first looking at the possibilities of exporting products to the EU, BRIC and the Pacific Rim countries. International trade is when different countries sell products or a service to another country.

EU

The European Union (EU) was originally made up of 3 different countries which was assembled in 1951. At first France and Germany had came together so they could share their coal and steel resources. A short while later Belgium, Netherlands and Luxembourg had also joined with France and Germany. In 1973 another 3 countries had also joined which were Denmark, UK, and the republic of Ireland. The next country to join was Greece in 1981. Fast forward five years and in 1986 Spain and Portugal also joined. In 1990 East Germany and West Germany reunified and Eastern Germany joined the EU. In 1992 new powers were given to the different countries and was given the name European Union. This mean that the countries were going to work together and increase co-operation between the different countries.

Global marketing is a fantastic way of making a company go from being small to being recognised worldwide. A perfect example of a business that exploded worldwide is McDonalds. That was originally started in America and as the demand increased so did the profitability of the business. You can be anywhere in the world and still see a McDonalds they are so popular.

Comparative advantage is an important aspect of global markets. Comparative advantage is a way for two countries who are trading together to both benefit. The way that it works is simple. If our country can produce goods at a lower cost than a foreign country and if the foreign country can produce another set of goods at a cheaper price. Then it makes sense for use to swap our low cost product for their low cost product. This way both countries benefit.