International trade is the exchange of capital, goods and services across international borders, which could involve the activities of governments and individuals. This is not a new concept. In the 1700s fast sailing ships called Clippers, used to transport tea from China, and spices from Dutch East Indies to different European countries.
In a review paper by the Levy Economics Institute of Bard College, it stated, “Tracing back the evolution of what today is recognized as the standard theory of international trade, one goes back to the years between 1776 and 1826, which respectively mark the publications of Adam Smith’s (1986 [1776]) Wealth of Nations and David Ricardo’s Principles of Economics (1951).” Sunanda S. (2010).
Globalization refers to the growing interdependence of countries resulting from the increasing integration of trade, finance, people, and ideas in one global marketplace (WTO). The importance of international trade cannot be over emphasized. The U.S Department of Commerce stated “The United States is by far the world’s largest exporter of services, and America’s globally competitive service industries-including audiovisual, banking, energy services, express delivery, information technology, insurance, and telecommunications-benefit immensely from opportunities abroad.
This has become possible due to advance in communication technology, transportation and management.
Management is the art of getting things done through the efforts of other people, by