1.
Border
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Borders are geographic boundaries of political entities or legal jurisdictions, such as governments, sovereign states, federated states, and other subnational entities. Some borders—such as an internal administrative border, or inter-state borders within the Schengen Area—are often open. Other borders are partially or fully controlled, and may be crossed only at designated border checkpoints. Mostly contentious, borders may even foster the setting up of buffer zones, a difference has also been established in academic scholarship between border and frontier, the latter denoting a state of mind rather than state boundaries. In the past, many borders were not clearly defined lines, instead there were often intervening areas often claimed, a special case in recent times was the neutral zones that were set up along parts of Saudi Arabias borders with Kuwait and Iraq. In modern times, marchlands have been replaced by clearly defined and demarcated borders, for the purposes of border control, airports and seaports are also classed as borders. Most countries have some form of control to regulate or limit the movement of people, animals. Some borders require presentation of legal paperwork like passports and visas, or other identity documents, moving goods across a border often requires the payment of excise tax, often collected by customs officials. Animals moving across borders may need to go into quarantine to prevent the spread of infectious diseases. Most countries prohibit carrying illegal drugs or endangered animals across their borders, moving goods, animals, or people illegally across a border, without declaring them or seeking permission, or deliberately evading official inspection, constitutes smuggling. Controls on car liability insurance validity and other formalities may also take place, in places where smuggling, migration, and infiltration are a problem, many countries fortify borders with fences and barriers, and institute formal border control procedures. But some borders are merely signposted and this is common in countries within the European Schengen Area and on rural sections of the Canada–United States border. Borders may even be unmarked, typically in remote or forested regions. The frontiers were particularly porous for the movement of migrants. A border may have been, Agreed by the countries on both sides Imposed by the country on one side Imposed by third parties, e. g, in addition, a border may be a de facto military ceasefire line. Political borders are imposed on the world through human agency, political borders are often classified by whether or not they follow conspicuous physical features on the earth. Natural borders are geographical features that present natural obstacles to communication, existing political borders are often a formalization of these historical, natural obstacles. Some geographical features that often constitute natural borders are, Oceans, oceans create very costly natural borders, very few nation-states span more than one continent
2.
Financial transaction
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A financial transaction is an agreement, communication, or movement carried out between a buyer and a seller to exchange an asset for payment. It involves a change in the status of the finances of two or more businesses or individuals, the buyer and seller are separate entities or objects, often involving the exchange of items of value, such as information, goods, services, and money. It is still a transaction if the goods are exchanged at one time, and this is known as a two-part transaction, part one is giving the money, part two is receiving the goods. In ancient times non-financial transactions were conducted through systems of credit, in which goods. Credit has certain disadvantages, including the requirement that traders or their intermediaries trust one another, debts must eventually be settled either with goods or by payment of money, a substance of agreed value such as gold and silver. Systems of credit are evident throughout recorded history and from archeology, by contrast little evidence has been found of widespread use of pure barter, where traders meet face to face and transactions are completed in a single swap. In 1997,1.3 billion US dollars were exchanged per day on the exchange market. The world financial transactions have jumped from 1.1 quadrillion US dollars in 2002 to 2.2 quadrillion US dollars in 2008 and this is the most common type of financial transaction. An item or goods are exchanged for money and this transaction results in a decrease in the finances of the purchaser and an increase in the benefits of the sellers. The smaller delayed repayments usually add up to more than the first large amount, the difference in payments is called interest. Here, money is given for not any specific reason and this is a combined loan and purchase in which a lender gives a large amount of money to a borrower for the specific purpose of purchasing a very expensive item. As part of the transaction, the borrower usually agrees to give the item to the if the loan is not paid back on time. This guarantee of repayment is known as collateral, a bank is a business that is based almost entirely on financial transactions. In addition to acting as a lender for loans and mortgages, the lender is known as a customer and gives unspecified amounts of money to the bank for unspecified amounts of time. The bank agrees to repay any amount in the account at any time, in addition, the bank guarantees that the money will not be stolen while it is in the account and will reimburse the customer if it is. In return, the bank gets to use the money for financial transactions as long as they hold it. This is a combination of a purchase and a loan. The seller gives the buyer the good or item as normal, in this way, the buyer is paying with a loan from the credit card company, usually a bank
3.
International trade
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International trade is the exchange of capital, goods, and services across international borders or territories. It is the exchange of goods and services among nations of the world, in most countries, such trade represents a significant share of gross domestic product. While international trade has existed throughout history, its economic, social, 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 market, food, clothes, spare parts, oil, jewellery, wine, stocks, currencies. 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 current account in the balance of payments. Industrialization, advanced technology, including transportation, globalization, multinational corporations, increasing international trade is crucial to the continuance of globalization. Without international trade, nations would be limited to the goods, the main difference is that international trade is typically more costly than domestic trade. Another difference between domestic and international trade is that factors of such as capital and labor are typically more mobile within a country than across countries. Thus international trade is restricted to trade in goods and services. Trade in goods and services can serve as a substitute for trade in factors of production, instead of importing a factor of production, a country can import goods that make intensive use of that factor of production and thus embody it. An example is the import of goods by the United States from China. Instead of importing Chinese labor, the United States imports goods that were produced with Chinese labor, International trade is also a branch of economics, which, together with international finance, forms the larger branch called international economics. The history of international trade chronicles notable events that have affected the trade between various economies, there are several models which seek to explain the factors behind international trade, the welfare consequences of trade and the pattern of trade. </ref></ref>==Largest countries by total international trade== Source, International Trade Centre President George W. Bush observed World Trade Week on May 18,2001, mcKenzie, Lionel W. Specialization and Efficiency in World Production. A Ricardo-Sraffa Paradigm Comparing the Gains from Trade in Inputs and Finished Goods, the definitions and methodological concepts applied for the various statistical collections on international trade often differ in terms of definition and coverage. Metadata providing information on definitions and methods are published along with the data. Ptas. mcgill. ca Historical documents on international trade available on FRASER
4.
Customs
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The movement of people into and out of a country is normally monitored by immigration authorities, under a variety of names and arrangements. Each country has its own laws and regulations for the import and export of goods into and out of a country, the import or export of some goods may be restricted or forbidden. In most countries, customs are attained through government agreements and international laws, a customs duty is a tariff or tax on the importation or exportation of goods. Commercial goods not yet cleared through customs are held in an area, often called a bonded store. All authorized ports are recognized customs areas, at airports, customs is the point of no return for all passengers, once a passenger has cleared customs, they cannot go back. In many countries, customs procedures for arriving passengers at many international airports and some road crossings are separated into red, passengers with goods to declare go through the red channel. Passengers with nothing to go through the green channel. Each channel is a point of no return, once a passenger has entered a particular channel, australia, Canada, New Zealand, and the United States do not officially operate a red and green channel system, however, some airports copy this layout. Airports in EU countries such as Finland, Ireland or the United Kingdom, as the EU is a customs union, travellers between EU countries do not have to pay customs duties. Value-added tax and excise duties may be if the goods are subsequently sold. Passengers arriving from other EU countries go through the blue channel, luggage tickets for checked luggage travelling within the EU are green-edged so they may be identified. In most EU member states, travellers coming from other EU countries can use the green lane. All airports in the United Kingdom operate a system, however some dont have a red channel. Customs is part of one of the three functions of a government, namely, administration, maintenance of law, order, and justice. However, in a bid to mitigate corruption, many countries have partly privatised their customs and this has occurred by way of contracting pre-shipment inspection agencies, which examine the cargo and verify the declared value before importation occurs. The countrys customs is obliged to accept the report for the purpose of assessing duties and taxes at the port of entry. It has been found that evasion of customs duty escalated when pre-shipment agencies took over and it has also been alleged that involvement of such agencies has caused shipping delays. Privatization of customs has been viewed as a fatal remedy, the basic customs law is harmonized across Europe within the European Union Customs Union
5.
Tariff
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A tariff is a tax on imports or exports. In other languages and very occasionally in English, tariff or its equivalent may also be used to any list of prices. A customs duty or due is the tax levied on the import or export of goods in international trade. In economic sense, a duty is also a kind of consumption tax, a duty levied on goods being imported is referred to as an import duty. Similarly, a duty levied on exports is called an export duty, a tariff, which is actually a list of commodities along with the leviable rate of customs duty, is popularly referred to as a customs duty. This is no longer the case, Customs duty is calculated on the determination of the assessable value in case of those items for which the duty is levied ad valorem. This is often the transaction value unless a customs officer determines assessable value in accordance with the Harmonized System, However, for certain items like petroleum and alcohol, customs duty is realized at a specific rate applied to the volume of the import or export consignments. For the purpose of assessment of duty, products are given an identification code that has come to be known as the Harmonized System code. This code was developed by the World Customs Organization based in Brussels, a Harmonized System code may be from four to ten digits. For example,17.03 is the HS code for molasses from the extraction or refining of sugar, However, within 17.03, the number 17.03.90 stands for Molasses. Introduction of Harmonized System code in 1990s has largely replaced the Standard International Trade Classification, in drawing up the national tariff, the revenue departments often specifies the rate of customs duty with reference to the HS code of the product. A Customs authority in each country is responsible for collecting taxes on the import into or export of goods out of the country, Evasion of customs duties takes place mainly in two ways. In one, the trader under-declares the value so that the value is lower than actual. In a similar vein, a trader can evade customs duty by understatement of quantity or volume of the product of trade, a trader may also evade duty by misrepresenting traded goods, categorizing goods as items which attract lower customs duties. The Evasion of customs duty may take place with or without the collaboration of customs officials, Evasion of customs duty does not necessarily constitute smuggling. Many countries allow a traveler to bring goods into the country duty-free and these goods may be bought at ports and airports or sometimes within one country without attracting the usual government taxes and then brought into another country duty-free. Some countries impose allowances which limit the number or value of items that one person can bring into the country. These restrictions often apply to tobacco, wine, spirits, cosmetics, gifts, often foreign diplomats and UN officials are entitled to duty-free goods
6.
Trade agreements
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A trade agreement is a wide ranging tax, tariff and trade treaty that often includes investment guarantees. The most common trade agreements are of the preferential and free trade types are concluded in order to reduce tariffs, quotas and other trade restrictions on items traded between the signatories. A trade agreement is classified as bilateral when signed between two sides, where each side could be a country, a trade bloc or a group of countries. A trade agreement signed between more than two sides is classified as multilateral, there are a variety of trade agreements, with some being quite complex, while others are less intensive. All agreements concluded outside of the WTO framework are called preferential by the WTO, the trade agreements called preferential by the WTO are also known as regional, despite not necessarily concluded by countries within a certain region. There are currently 205 agreements in force as of July 2007, over 300 have been reported to the WTO. The number of FTA has increased significantly over the last decade, between 1948 and 1994, the General Agreement on Tariffs and Trade, the predecessor to the WTO, received 124 notifications. Since 1995 over 300 trade agreements have been enacted, increasing efficiency through free trade is a common goal. For the most part, governments are supportive of trade agreements. There have been some concerns expressed by the WTO. Indianapolis, Library of Economics and Liberty
7.
Timeline of international trade
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The history of international trade chronicles notable events that have affected the trade between various countries. In the 21st century, China, the European Union and the United States are the three largest trading markets in the world, records from the 19th century BCE attest to the existence of an Assyrian merchant colony at Kanesh in Cappadocia. The domestication of camel allows Arabian nomads to control long distance trade in spices, the Egyptians trade in the Red sea, importing spices from the Land of Punt and from Arabia. Indian goods are brought in Arabian vessels to Aden, the ships of Tarshish, a Tyrian fleet equipped at Ezion Geber, make several trading voyages to the East bringing back gold, silver, ivory and precious stones. Tiglath-Pileser III attacks Gaza in order to trade along the Incense Route. The Greek Ptolemaic dynasty exploits trading opportunities with India prior to the Roman involvement, the cargo from the India and Egypt trade is shipped to Aden. With the establishment of Roman Egypt, the Romans initiate trade with India, the goods from the East African trade are landed at one of the three main Roman ports, Arsinoe, Berenice or Myos Hormos. Myos Hormos and Berencie appear to have been important ancient trading ports, gerrha controls the Incense trade routes across Arabia to the Mediterranean and exercises control over the trading of aromatics to Babylon in the 1st century BC. Additionally, it served as a port of entry for goods shipped from India to the East, due to its prominent position in the incense trade, Yemen attracts settlers from the fertile crescent. Pre-Islamic Meccans use the old Incense Route to benefit from the heavy Roman demand for luxury goods, in Java and Borneo, the introduction of Indian culture creates a demand for aromatics. These trading outposts later serve the Chinese and Arab markets, following the demise of the incense trade Yemen takes to the export of coffee via the Red Sea port of al-Mocha. The Abbasids use Alexandria, Damietta, Aden and Siraf as entry ports to India, at the eastern terminus of the Silk Road, the Tang Dynasty Chinese capital at Changan becomes a major metropolitan center for foreign trade, travel, and residence. This role would be assumed by Kaifeng and Hangzhou during the Song Dynasty, guangzhou was Chinas greatest international seaport during the Tang Dynasty, but its importance was eclipsed by the international seaport of Quanzhou during the Song Dynasty. Merchants arriving from India in the city of Aden pay tribute in form of musk, camphor, ambergris and sandalwood to Ibn Ziyad. Indian exports of spices find mention in the works of Ibn Khurdadhbeh, al-Ghafiqi, Ishak bin Imaran, the Hanseatic League secures trading privileges and market rights in England for goods from the Leagues trading cities in 1157. Due to the Turkish hold on the Levant during the half of the 15th century the traditional Spice Route shifts from the Persian Gulf to the Red Sea. In 1492 a Spanish expedition commanded by Christopher Columbus arrive in America, Portuguese diplomat Pero da Covilha undertakes a mission to explore the trade routes of the Near East and the adjoining regions of Asia and Africa. The exploration commenced from Santarém to Barcelona, Naples, Alexandria, Cairo, Portuguese explorer and adventurer Vasco da Gama is credited with establishing another sea route from Europe to India
