Foreign trade as a vector of economic growth in the globalizing world

Abstract

This chapter views theoretical aspects and the evolution of the establishment of international trade, as well as determining the role of foreign trade in the development of national economies under modern conditions. The authors analyse various definitions of the notion “trade”, determine the role of trade in the sectorial structure of gross domestic product (GDP), study the definitions of the notion “service”, view the main characteristics of internal trade and the structure of foreign economic activities, and determine the methods of organization of foreign trade and the most significant types of risks in foreign trade. The authors also study the processes of globalization, the deepening of internationalization of economic life, transnationalization, the appearance of a large number of international organizations and integration associations, and the development of foreign economic relations in general and foreign economic contacts in particular. The chapter views the theory of closed and open economies, and the sense of tariff and non-tariff limitations, analyses the history of the establishment of international economic relations, and the policy of import substitution, as well as determining the main pros and cons of the model of export orientation. The authors study distinctive features of the modern global economy, study dynamics of foreign trade turnover in selected countries, dynamics of export and import, trade balance, GDP and GDP per capita, changes in export and import quotas, direct foreign investments, and the number of transnational corporations.