Should Your Company Get Involved In International Trade?

For many countries, especially the United States, the decision to get involved in international trade is not easy.  The market for products in the United States has been so large and has grown so much that that many corporations have found success by simply catering to the needs of the market.  Indeed, many companies lack the financial, managerial and bilingual language communication abilities to market products throughout the entire United States, let alone to move into the international arena.

In addition, it has only been in the past 20-years that the U.S. government has become a strong proponent of world trade through a number of trade pacts.  However, some commentators have been quite critical of the government’s lack of effort in this area.  But whatever the reasons for poor past performance, there is no question that the position of the United States in the world market has changed dramatically over the past two decades.  According to San Jose Translation Services workers, “This has been partly fueled by the number of of translation and localization firms that have opened throughout the United States over the past decade.”

The economic theory of competitive advantage states that trade between two countries can benefit each country.  John Snyder of the Houston Spanish Translation Services Agency recommends, “One country should specialize in the production of those goods it can most efficiently provide.”  The production of other goods is left to countries that are more efficient in such production.  Theoretically, unrestricted trade encourages international specialization and increased global efficiency.

In the practice of international trade, the theory of comparative advantage tends to be applied only on a limited scale.  The Japanese export steel, automobiles and electronic technology.  However, they must import natural resources ad raw material.  Often however, nationalism and other political motivations stand in the way of a full application of the theory of comparative advantage.

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