1 of 6

INTERNATIONAL TRADE AND INTER-REGIONAL TRADE

Dr. Yogita Beri

Assistant Professor,

Department of Economics,

Vasanta College for Women,

Rajghat Fort (B.H.U),

Varanasi- 221001.

​

2 of 6

INTRODUCTION

  • International trade is the exchange of goods and services between countries. Trading globally gives consumers and countries the opportunity to be exposed to goods and services not available in their own countries, or which would be more expensive domestically.
  • Inter-regional trade refers to trade between regions within a country.

3 of 6

DIFFERENCES

  • Factor Immobility
  • Differences in Natural Resources
  • Geographical and climatic differences
  • Different Markets
  • Mobility of Goods
  •  Different Currencies

​

4 of 6

  • Problems of Balance of Payment
  • Different Transport costs
  • Different Economic Environment
  • Different Political Groups
  • Different National Policies

5 of 6

SIMILARITIES

  • Factor Mobility
  • Difference in wage rate
  • Factor Endowment
  • Currency difference
  • Price discrimination
  • Comparative cost

​

6 of 6

CONCLUSION

  • Therefore, the classical economists asserted on the basis of the above arguments that international trade was fundamentally different from domestic or inter-regional trade. Hence, they evolved a separate theory for international trade based on the principle of comparative cost differences.

​