Company Name:
Lishui Huanqiu Bearing Trading Co., Ltd.
Company Address:
No.11 Shiting Road, Shuige Industrial Zone,Lishui, Zhejiang,China
Contact Person: William
Email: admin@tradebearings.com
Homepage: www.asiabearings.com
Bearing B2B: www.tradebearings.com
Advantages
* Optimum use of Resources: Foreign trade helps in the optimum use of natural resources and avoid wastage of resources.
* Stable Price: It ensures the presence of stable price by avoiding wide fluctuations in prices. It tries to equalize the world price.
* Availability of all types of goods: It enables a country to import those goods which it cannot produce.
* Increased Standard of living: It ensures more production to meet the demand of the people of different countries.
* Large Scale production: It ensures large production because the production is carried on to meet the demand of its people as well as world market.
Disadvantages
* It could lead to a more rapid depletion of exhaustible natural resources.
* It is a long distance trade and as such it becomes difficult to maintain close relationship between the buyer and the seller.
* Each country has its own language. As foreign trade involves trade between two or more countries, there is diversity of languages. This difference in language creates problem in foreign trade.
* Foreign trade involves preparation of a number of documents which also creates difficulties in the way of foreign trade.
* Some restrictions are imposed on export and import of commodities. These restrictions stands on the progress of foreign trade.
* Foreign trade involves a great deal of risks because trade takes place over a long distance. Though the risks are covered through insurance, it involves extra cost of production becuase insurance cost is added to cost.
