World Trade Market
World trade market can be defined in simple words as, “the market place where importers and exporters interact (exchange) with each other”. Formally it can be defined as, “the market place/event where different international organizations launch or introduce their new products to other organizations and individuals”. In this way these organizations get international recognition to their newly launched products and goods and be able to not only sell their new products locally but they capture some share in the world market.
In the world trade market (WTM) capital, goods and services are exchanged between international boarders or countries. These activities are performed by government and individuals. Such trade shows the major share of gross domestic product (GDP). World trade market (WTM) has got famous recently and has been on the rise in recent centuries.
Example of World Trade Market
World Trade Market (WTM Africa) exhibitors took place at the Cape Town International Convention Centre (CTICC). The event ended on the 8th of April 2016. WTM was the meeting place for African travel industry. It was a global show tailored to the African market, where real value business conversation with wide ranging of South African, Sub Sharan African and International exhibitors from Dubai, India, Thailand, Abu Dhabi, Reunion, Seychelles, Mauritius, Ghana, and Maldives.
Characteristics of World Trade Market
Trading globally gives consumers and countries the opportunity to be exposed to new markets and products. Almost every kind of product can be found on the international market: food, clothes, spare parts, oil, jewelry, wine, stocks, currencies and water. Services are also traded: tourism, banking, consulting and transportation. A product that is sold to the global market is an export, and a product that is bought from the global market is an import. Imports and exports are accounted for in a country’s current account in the balance of payments.
Difference between Local Market and World Trade Market
World trade is much more costly than local trade. This is because sending goods and services beyond the international borders involve additional costs e.g. tariffs, time costs due to border delays, customs etc.
Another difference is that cost of factors of production may differ domestically as compared to internation trade. Also factors of production are more mobile within a country than across borders. Instead of importing a factor of production, a trader can import goods that make intensive use of that factor of production and therefore embody it.
An example could be the import of labor intensive goods by the US from China. Instead of importing Chinese labor, the US imports goods that were produced by Chinese labor.
List of Top 10 Traded Commodities in World Trade Market
Source: International Trade Centre
Volume of world merchandise exports
List of Top 10 Countries by Exports in the World Trade Market
Following is the top 10 list of countries that exports maximum of the world trade.
Source: World Integrated Trade Solution
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