The International Trade
Ekonomia III
Magdalena Cupryjak
1 |
S t r o n a
Nowadays, none of economies is not fully self-sufficient. To maintain a high standard
of living and meet their needs most countries in deficit purchases goods or their substitutes
from other countries of the World.
This phenomenon is called international trade, foreign or otherwise. This is the total
value of exports and imports. The main objective of foreign trade is that each country
specializes in the production of such goods and services whose production costs are the
lowest in the country. It is important sector of the national economy. The value of foreign
trade are included in the trade balance (this is difference between the value of goods sold
abroad and purchased from abroad), which is part of the balance of payments or revenue and
expenditure of the state
1
.
International trade is important for the maximization of economic development,
ensuring the supply of essential raw materials, goods, food, consumer goods and technology.
In addition to the exchange of material goods to foreign trade turnover also consists of assets
and credit and current turnover, such as trade in goods, purchase and sale of licenses abroad,
know-how, the maintenance of diplomatic missions, the obligations arising from the
migration of the population.
The basic forms of trade is the import, export, re-export and transit trade.
Import is the purchase of goods and services abroad for use in the domestic market.
Poland imports mainly electrical machinery products, chemical, light and fuel and energy.
The main import partners are Germany, Italy, Russia and the United Kingdom. In 2013
Poland imported $ 203 billions, making it the 25th largest importer in the world. During the
last five years the Imports of Poland have Decreased at an annualized rate of -0.1%, from $
204 billions in 2008 was $ 203 billions in 2013. The most recent Imports are led to Crude
Petroleum Which Represent 8.37% of the total Imports of Poland , Followed by Vehicle Parts,
Which account for 3.02%
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.
1
“What is international trade?”, website:
http://www.investopedia.com/articles/03/112503.asp
2
Website:
http://atlas.media.mit.edu/en/profile/country/pol/
The International Trade
Ekonomia III
Magdalena Cupryjak
2 |
S t r o n a
Picture 1. Poland imports.
Source:
http://www.tradingeconomics.com/poland/imports
Imports in Poland increased by 5.4 percent to 14748 EUR Million in November of
2015 from 13996 EUR Million a year earlier. It was the lowest value since June. Imports in
Poland averaged 9073.76 EUR Million from 2000 until 2015, reaching an all time high of
15287 EUR Million in October of 2014 and a record low of 3418 EUR Million in January of
2000. Imports in Poland is reported by the Central Statistical Office of Poland (GUS)
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.
Export is a foreign entity is the sale of goods and services produced in the country.
The basis of Polish exports are metallurgical products, wood and paper and chemical
industries. The main export partners include Germany, the Netherlands, Russia and Italy. In
2013 Poland exported $ 193 billions, making it the 26th largest exporter in the world. During
the last five years the exports of Poland have Increased at an annualized rate of 4.3%, from $
157 billions in 2008 was $ 193 billions in 2013. The most recent exports are led by Vehicle
Parts Which Represent 5.25% of the total exports of Poland, Followed by Cars, Which
account for 2.92%
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.
3
Website:
http://www.tradingeconomics.com/poland/imports
4
Website:
http://atlas.media.mit.edu/en/profile/country/pol/
The International Trade
Ekonomia III
Magdalena Cupryjak
3 |
S t r o n a
Picture 2. Poland exports.
Source:
http://www.tradingeconomics.com/poland/exports
Exports in Poland increased by 12.6 percent year-on-year to 15504 EUR Million in
November of 2015 from 13765 EUR Million a year earlier. It was the highest value on record.
Exports in Poland averaged 8435.02 EUR Million from 2000 until 2015, reaching an all time
high of 15504 EUR Million in November of 2015 and a record low of 2499 EUR Million in
January of 2000. Exports in Poland is reported by the Central Statistical Office of Poland
(GUS)
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.
Transit trade is a trade where the company carrying out the transaction is not either in
the country of import or export. This form of trading is beneficial when there are difficulties
direct trade with a particular country with political or military reasons. The object of such
transactions are usually cotton, tobacco serial products.
Poland is the 26th largest export economy in the world and the 21st most complex
economy according to the Economic Complexity Index (ECI). As of 2013 Poland had a
5
Website:
http://www.tradingeconomics.com/poland/exports
The International Trade
Ekonomia III
Magdalena Cupryjak
4 |
S t r o n a
negative trade balance of $10 billions in net imports. As compared to their trade balance in
1995 when they still had a negative trade balance of $6.52B in net imports.
As regards the country as a whole, international trade is determined by external trade
policy, which is to have the formation of such diversions of trade that are most relevant to the
needs of the national economy. Economic instruments used in trade policy are:
Customs
Taxation of export
quotas of foreign goods turnover
Manipulating the exchange rate
Export credits
Financing of export production.
These measures aim to reduce imports and stimulate exports.
The most important international organization dedicated to the supervision and monitoring of
trade in global terms is the World Trade Organization
6
. It performs three basic functions;
Regulatory - is a forum for negotiation, cooperation and dispute settlement
A control - control the activities of reforms and agreements,
Operational - providing technical assistance to Member States
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.
The WTO aims to broadly understood protection and surveillance of trade. Specific objectives
can include;
This is the forum for negotiations existing trade relations in the fields
Administers dispute resolution
Manages the Trade Policy Review Mechanism
Works with the International Monetary Fund, the International Bank for
Reconstruction and Development and the World Bank group to formulate a coherent
economic policy
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.
6
„Understanding WTO. Who we are.”, World Trade Organization, website:
https://www.wto.org/english/thewto_e/whatis_e/who_we_are_e.htm
7
‘Understanding WTO. What we stand for.”, World Trade Organization, website:
https://www.wto.org/english/thewto_e/whatis_e/what_stand_for_e.htm
The International Trade
Ekonomia III
Magdalena Cupryjak
5 |
S t r o n a
The countries trade with each other for the same reasons that individuals and companies
within a single country: both sides stand to gain. They refer them because trade allows them
to exchange goods they need, things that produce. In some countries, you can produce
something that can not be in others.
8
„Understanding WTO. What we do.”, World Trade Organizations, website:
https://www.wto.org/english/thewto_e/whatis_e/what_we_do_e.htm
The International Trade
Ekonomia III
Magdalena Cupryjak
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S t r o n a
Sources:
I.
Websites:
www.wto.org
, World Trade Organization,
www.tradingeconomics.com
www.atlas.media.mit.edu
www.investopedia.com