Global trade has been on the rise for the past decades. This is actually not a new phenomenon. Global trade has existed even before civilization itself, for thousands of years. When we talk about global trade we mainly talk about the exchange of goods and services between countries. This is now a common phenomenon. The idea of global trade wasn’t very common in the past, but over the last couple of years it has actually exploded. As the world in general experiences peace and prosperity. The whole idea that global trade flourishes during times of peace is actually true. With millions of people purchasing foreign products there is the constant need to trade with foreign businesses. This can actually be seen with United States goods such as the iphone. Iphones are purchased by people throughout the world. This is sometimes done by retailers who purchase the product in the United States and resell it in a different country.
E-commerce global trade
Since global trade is the exchange of goods and services at an international scale it is common for goods to be traded online. In modern times e-commerce now plays a huge role in global trade. This is due to the countless number of people who prefer foreign goods and have the funds to purchase these foreign goods. In e-commerce global trade the most common form of trade is B2B global trade. This is the trade between two businesses. In e-commerce it is usually the producer and the retailer. Alibaba has been a champion of e-commerce global trade due to its unique position in the largest manufacturing country China.
In global trade it is important that there are good relations between countries. These good relations ensure that there is a continuation of trading relation. Some countries form multilateral free trade agreements such as NAFTA.