International trade between countries and across continents has existed for centuries, including previous civilizations.
International transactions have traditionally included traded goods such as textiles, foodstuffs, spices, precious metals, precious stones and art objects, and various items across borders.
Everyone has heard of the Silk Road, as well as the Amber Road and other famous routes that existed, and the ports and towns that flourished due to trade, which were done by land and by sea.
We have come a long way in the past, and today international trade has taken on a new dimension.
The impact of trade between the two countries was not limited to the economy but also fuelled political and social ambitions.
Today, with the advancement of technology and the impact of globalization, all countries are essential to international trade to survive.
Various factors, including but limited to industrialization, development of transportation, globalization, the technology that does not make trade and communication possible, have affected changing the format of business organizations as well as business practices.
Companies and organizations today are no longer creatures with a local identity.
Several national organizations have emerged in the last century with traces around the world.
They have shrunk the earth and changed the way jobs are done.
Companies no longer limit themselves to local markets.
They no longer depend on local resources.
Wherever these companies produce in terms of cheaper access to resources as well as local government support and markets, their geographical boundaries do not bother them.
They are everywhere.
In terms of communications and software technology, it has changed the way business organizations are managed in production, procurement, financing, or sales.
Today, software programs guide the process and work with speed.
In the current scenario, no country can break away from this and participate in globalization.
As countries open their economies to global competition, they must be careful not to harm the domestic economy and protected industries.
This balancing act is often done through the trade and tariff policies of countries, which is part of the foreign trade policy of each country, whose approach to trade and international trade prevails.
Since World War II, the WTO has played an important role in facilitating and simplifying global trade and tariff structures to move towards free trade.
In reality, however, free trade can only be a dream as long as there is no balance between developed and developing economies.
Today, most countries are parties to several bilateral agreements and multilateral and trade tariffs such as the GATT – General Agreement on Tariffs and Trade, anyway, they regulate imports and exports to specific countries.
In recent decades, we have witnessed the emergence of exports and imports of services and are constantly growing.
Developing countries use their intellectual capital to provide software services to developed countries.
International transactions today have other new dimensions such as intellectual property, types of services, trade-related investments, bilateral and multilateral trade agreements, creating conditions for trade in services, investments, as well as creating an atmosphere for resolving disputes.
The management of international trade has multidimensional aspects, which must be considered by each country.
Any political, economic, or other events anywhere on the planet affect the international trade of any country.
We are witnessing the impact of the recession in a country that is affecting the world.
We are also witnessing the impact of the collapse of financial markets in a country with widespread effects around the world.
Every business manager who is responsible for operating a business in today’s organization must understand the macro global trade, macroeconomics, macro-finance, and its impact.
He must understand the policies and procedures of export and import at the micro-level to be able to conduct his business in the existing environment.
He can anticipate risks, assess the impact, and manage risks damaging his organization’s success.