The exchange of goods among people, states and countries is referred to as trade. The market is the place where such exchanges take place. Trade between two countries is called international trade. It may take place through sea, air or land routes. While local trade is carried in cities, towns and villages, state level trade is carried between two or more states. Advancement of international trade of a country is an index to its economic prosperity. It is, therefore, considered the economic barometer for a country. As the resources are space bound, no country can survive without international trade. Export and import are the components of trade. The balance of trade of a country is the difference between its export and import. When the value of export exceeds the value of imports, it is called a favorable balance of trade. On the contrary, if the value of imports exceeds the value of exports, it is termed as unfavorable balance of trade. India has trade relations with all the major trading blocks and all geographical regions of the world. Among the commodities in export the share of agriculture and allied products has been 9.9 per cent, ores and minerals 4.0%, gems and jewellery 14.7 per cent, petroleum products (including coal) 16.8 per cent in 2010-11. The commodities imported to India include petroleum and petroleum products (28.6 per cent), pearls and precious stones (9.4 per cent), chemicals (5.2 per cent), coal, coke and briquettes (2.7 per cent), machinery (6.4 per cent) in 2010-11. Bulk imports as a group registered a growth accounting for 28.2 per cent of total imports. This group includes fertilizers (3.4 per cent), cereals (14.3 per cent), edible oils (17.4 per cent) and newsprint (Paper board manufacture and newsprint 40.3 per cent) in 2010-11. International trade has under gone a sea change in the last fifteen years. Exchange of commodities and goods have been superseded by the exchange of information and knowledge. India has emerged as a software giant at the international level and it is earning large foreign exchange through the export of information technology.
Classification of International Trade:
(a) Import Trade:
It refers to purchase of goods from a foreign country. Countries import goods which are not produced by them either because of cost disadvantage or because of physical difficulties or even those goods which are not produced in sufficient quantities so as to meet their requirements.
(b) Export Trade:
It means the sale of goods to a foreign country. In this trade the goods are sent outside the country.
(c) Entrepot Trade:
When goods are imported from one country and are exported to another country, it is called entrepot trade. Here, the goods are imported not for consumption or sale in the country but for re- exporting to a third country. So importing of foreign goods for export purposes is known as entrepot trade.
TOURISM AS A TRADE
Tourism in India has grown substantially over the last three decades. Foreign tourist’s arrivals in the country witnessed an increase of 11.8 per cent during the year 2010 as against the year 2009, contributing Rs 64,889 crore of foreign exchange in 2010. 5.78 million Foreign tourists visited India in 2010. More than 15 million people are directly engaged in the tourism industry. Tourism also promotes national integration, provides support to local handicrafts and cultural pursuits. It also helps in the development of international understanding about our culture and heritage. Foreign tourists visit India for heritage tourism, eco tourism, adventure tourism, cultural tourism, medical tourism and business tourism.
There is a vast potential for development of tourism in all parts of the country. Efforts are being made to promote different types of tourism for this upcoming industry.
-YASH, VAIBHAV AND PALAK
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