BASICS OF INTERNATIONAL TRADE AND BUSINESS FOR BEGINNERS (Must Known Subjects)

Summary

This video script offers a comprehensive guide for aspiring international traders and business owners. It covers the basics of international trade, its history, types, benefits like lower costs and product variety, and associated risks. The speaker, Murat, outlines steps to start an import-export business, emphasizing preparation, market research, and understanding legal aspects. The call to action encourages viewers to engage with the content and subscribe for more insights.

Takeaways

• 🌐 International trade is essential for economic growth, job creation, and poverty reduction.
• 📈 Trade is influenced by various factors including natural resources, economic trends, and government policies.
• 🚀 Expanding businesses through international trade can lead to increased strength, success, and profitability.
• 🛒 Globalization has made the world a borderless marketplace, offering a wide variety of goods and services.
• 🌱 International trade began with barter trade and evolved through mercantilism and liberalism to the current globalized economy.
• 🔄 The three main types of international trade are export trade, import trade, and entrepot trade.
• 💰 Benefits of international trade include lower product costs, increased production efficiency, product variety, and better management of market fluctuations.
• ⚠️ Risks in international trade include buyer and seller risks, third-party risks, and geographical risks.
• 📝 Starting an international business involves preparation, market research, evaluating distribution methods, and understanding regulations and legal aspects.
• 📈 International trade is a dynamic field with opportunities for growth and challenges that can be managed with proper knowledge and strategies.

Q & A

What is the significance of international trade in today's global economy?

International trade is significant as it influences a range of activities including jobs, consumption, poverty reduction, the environment, and international relations. It connects the world economy and allows for the exchange of goods and services that might otherwise be inaccessible.

What are the potential benefits of venturing into international trade for a business?

International trade can make a business stronger, more successful, and more profitable by expanding its market beyond local boundaries and tapping into the global marketplace.

How does international trade affect the variety of products available to consumers?

International trade increases product variety by allowing consumers access to goods from around the world, providing a wider range of options all year-round.

What is the concept of 'comparative advantage' in international trade?

Comparative advantage is an economic theory stating that countries should specialize in producing goods in which they have a lower opportunity cost compared to other goods and trade for the rest, leading to mutual benefits.

What historical economic system was centered around the idea of balanced trade and is considered the precursor to modern international trade?

Mercantilism was an economic system that promoted balanced trade, where the value of a country's exports exceeded its imports, and it is considered a precursor to modern international trade.

What are the three major types of international trade mentioned in the script?

The three major types of international trade are export trade, import trade, and entrepot trade.

How does international trade help in managing market fluctuations?

International trade helps manage market fluctuations by allowing businesses to sell surplus products in different markets where demand is high, thus mitigating the effects of seasonal sales changes.

What are some of the risks associated with international trade?

Risks associated with international trade include buyer risks, seller risks, third-party risks, and geographical risks, which can involve political instability, economic downturns, and currency fluctuations.

What is the first step recommended for starting an international business?

The first step recommended for starting an international business is to prepare a business plan that considers the international market, assesses needs, and sets objectives.

Why is it important for international businesses to stay updated on regulations and legal aspects?

It is important for international businesses to stay updated on regulations and legal aspects because every market has distinct rules that are subject to change, and non-compliance can lead to penalties.

What does the speaker suggest as a way to show understanding of the basic subjects of international trade and business?

The speaker suggests commenting with 'I get it' and using the hashtag #TeamMurat to show understanding and engagement with the content.