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Types of international trade

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  • Forword: This is the chapter two of the international trade knowledge,it's also the basic international trade knowledge.
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There are many ways to classify international trade, common ones are:
According to the movement of goods:
(1) Export Trade:
When the products produced in the country are sold to foreign countries, the foreign exchange paid by the foreign countries is obtained. Export trade is not necessarily goods, may be technology, patents, knowledge and so on.
(2) Import Trade:
The purchase from abroad of goods produced in another country, regardless of whether the goods are produced in that country of export. Import trade and export trade are in fact one and two sides, the establishment of a transaction must be the buyer and seller, from the standpoint of the buyer, the transaction is import trade; As far as the seller's position is concerned, it is export trade.
(3) Transit Trade:
When goods are transported from the exporting country to the importing country, they must pass through a third country, for whom the transaction is considered transit trade.
(4) Report and report Trade (report Trade) :

It means that the goods from the exporting country to the importing country must be unloaded, stored, reorganized or refitted through a third country or place before being transshipped to the importing country. This trade is called entrepot trade, please refer to the following Figure

intermediary trade flow chart

According to the form of goods:
1) Visible Trade:
If the traded goods are tangible goods with volume and weight, such as clothing, food, cement, etc., it is called tangible trade, and tangible trade must go through the import and export customs clearance.
(2) Invisible Trade
If the goods traded are the provision of intangible services or services, such as transpoRTAtion, insurance, finance, etc., it is called invisible trade.
According to trade routes:
(1) Direct Trade:
It refers to the direct transaction between the buyer and the seller of import and export, and there is no third party involved, and the goods or payment for goods does not go through a third place.
(2) Indirect Trade:
It refers to the trade between import and export buyers and sellers not directly, but indirectly through the medium of a third party (commission agent). Commissions are paid in exchange for their services and are not responsible for their own profits or losses.
(3) A common panel of triangle Trade:

It refers to that the exporter of the exporting country does not directly contract with the importer of the importing country, but the intermediary of the third country in the position of the buyer and the exporter to conclude a purchase contract, and then in the position of the seller and the importer to conclude a sales contract, from the payment of goods to earn the difference profit, but the goods directly from the exporting country to the importing country. See the following Figure .

triangle trade flow chart

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