International Trade: Advantages And Disadvantage Of International

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International trade is the exchange of goods and services between the countries. As it is concerned with UK, an import is the UK purchase of goods and services made from overseas. An export is a sale of UK to goods and services made overseas. An export is the sale of a UK made goods or services overseas.

The reason for international trade is really an extension for good relation with other country or providing the other nation with financial aids etc. the reason for any company to go global is because of the following reasons.

Reason for any company to go international

The importance of international trade to Uk based organization is that it can trade feely within the European union zone with the member nations. To U.K. based
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There are now 13 nations who have joined this treaty where in which they have adopted a common currency between them that is EURO. The implication if UK joins the EMU has both advantages and disadvantages.

Advantages Disadvantages
1. Long-term economic stability will bring by having a common currency. 1. The country, like other outsiders, will be very much affected by the policies adopted by the EMU member.
2. No exchange rate losses for companies who are EMU body. 2. All decisions which relate to monetary and exchange rate policy will be to reflect primarily the interests of the EMU participants.
3. Abolition of barriers to single European market. 3. Its trading partners would dominate decisions making in key areas of EU policy.
4. There will be a price transparency in the whole zone 4. The gain in competitiveness of the Emu group would, other things being equal, be equivalent to loss of competitiveness among countries outside.

Advantages and Disadvantages of joining common
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