FOREIGN TRADE

Foreign trade, also known as international trade, is the general name given to the purchase and sale of services or products between countries. If the foreign traded product or service is sent to another country, it is called export, if it is brought from another country, it is called import.

Foreign trade, which has an important role in the globalizing economy, also has an important mission in terms of gross national product for countries. The role of foreign trade is very big in terms of balance of payment and current account deficits of countries.

The goals that countries set in relation to foreign trade and the decisions they take to achieve these goals are generally called foreign trade policy. In order to talk about foreign trade policy in a country, the following measures and practices must be implemented by the state:

O Protection of domestic producers against foreign trade competition
O Preventing imbalances in payments
O Avoiding the current account deficit
O Ensuring economic stability
O Maintaining supply and demand balances in domestic markets
O Sustaining economic growth and development