Bases of International trade:

(i) Difference in national resources: The world’s national resources are unevenly distributed because of differences in their physical make up i.e. geology, relief soil and climate.

(ii) Population factors: The size, distribution and diversity of people between countries affect the type and volume of goods traded.

(iii) Stage of economic development: At different stages of economic development of countries, the nature of items traded undergo changes.

(iv) Extent of foreign investment: Foreign investment can boost trade in developing countries which lack in capital required for the development of mining, oil drilling, heavy engineering, and lumbering and plantation agriculture.

(v) Transport: With expansions of rail, ocean and air transport, better means of refrigeration and preservation, trade has experienced spatial expansion.

Trades:

 (a)  Bilateral trade: Bilateral trade is done by two countries with each other. They enter into agreement to trade specified commodities amongst them. For example, country A may agree to trade some raw material with agreement to purchase some other specified item to country B or vice versa.

 (b)  Multi-lateral trade: As the term suggests multi-lateral trade is conducted with many trading countries. The same country can trade with a number of other countries. The country may also grant the status of the “Most Favoured Nation” (MFN)  on some of the trading partners. 

Ports:

 (i) The chief gateways of the world of international trade are ports. Cargoes and travellers pass from one part of the world to another through these ports.

 (ii) The ports provide facilities of docking, loading, unloading and the storage facilities for cargo.

 (iii) The importance of a port is judged by the size of cargo and the number of ships handled. The quantity of cargo handled by a port is an indicator of the level of development of its hinterland.

Examples:

(i) International trade can prove to be detrimental to nations of it leads to dependence on other countries, uneven levels of development, exploitation, and commercial rivalry leading to wars.

(ii) Global trade affects many aspects of life; it can impact everything from the environment to health and well-being of the people around the world.

(iii) As countries compete to trade more, production and the use of natural resources spiral up, resources get used up faster than they can be replenished.

(iv) As a result, marine life is also depleting fast, forests are being cut down and river basins sold off to private drinking water companies.

(v) Multinational corporations trading in oil, gas mining, pharmaceuticals and agri-business keep expanding their operations at all costs creating more pollution – their mode of work does not follow the norms of sustainable development.

Port: Is the entire area on the sea coast with dock facility for loading and unloading of cargo. It includes administrative blocks, ware houses, custom office and transport facilities etc.

Harbour: is partially enclosed part of the sea coast providing shelter to the ships. It can be natural or manmade e.g. creek, estuary, or sea inlet.

Port as gateways of international Trade:

(i) Ports handle cargo and passenger traffic

(ii) Ports are handling large volumes of domestic as well as overseas trade.

(iii) Port provides a corridor between its hinterland and the rest of the world for international trade.

Map of the World:

(A) Appalachian Region

(B) St. Petersburg

(C) Brasilia

(D) Cape Town

(E) Jakarta