International trade is the exchange of goods and services between countries. This type of trade gives rise to a world economy, in which prices, or supply and demand, affect and are affected by global event.While international trade has been present throughout much of history (see Silk Road, Amber Road), its economic, social, and political importance has been on the rise in recent centuries. Industrialization, advanced transportation, globalization, multinational corporations, and outsourcing are all having a major impact on the international trade system. Increasing international trade is crucial to the continuance of globalization.
In future trade the key development to watch is the relationship between the industrialized and developing nations. Third World countries export their mineral deposits and tropical agricultural products, which bring them desired foreign exchanges. Tourism has also been greatly responsible for the rapid development of some developing nations. Many Third World nations with high unemployment and low wages have seen and emigration of workers to the developed nations. Western Europe has received millions of such workers from Mediterranean countries. The developing nations profit when these workers bring their savings and their acquired technical skills back home. Many developing nations benefit when Western nations establish manufacturing in their countries to take advantage of cheap labor.
International monetary cooperation will have a significant impact on future trade. If the IMF countries are not able to agree upon a new international monetary order in the years to come, international trade many become too risky for some companies to get involved in. If the IMF is unable to create sufficient international liquidity reserves in the future, there may not be enough liquidity to sustain growth in trade.