Question

Why do firms engage in international trade? Select one method of trade and explain it to someone who doesn't know very much about global business. Please cite your sources.

Answer 1

or why do firms engage in international trade ? Select one methode of trade and explain it to some one who doesn't know very much about global buniness. firms engage in international trade because of the following reason - As we know each nation is speciali zed in producing cextain type of goods and services more effectively and efficiently while other nation fail to do that, so international trade helps to exchange these goods and services by the help of firms. followings are the other reasons- • some trade takes place for policat polit- cal and other reasons relating to history and tradition. To reduce the dependency on existing market. for enhancement of domestic competitive ness and for better margins. To diversification of risk management. Local firms try to improve the quality of their products. • To extend sales potential of existing Products and gain global market share. To exploit international trade technology.

Day trading - It is the most well- known active trading method, it is the method of bying and selling securites within the one day. The positions care closed out within the same day as they are taken and no position is held for overnight. Day truding one of the succesful trade method. Day trading is done by the proff professional traders such as market maker specialists Example of trade i n the China produces vast amount of tea and they trade this tea, they import it to united states, united states purchase it from china,
Above are the some reasons mentioned why firms engage in international trade with one method of trade.