International market - What is it? characteristics, examples, and more

International market - What is it? characteristics, examples, and more
Posted on 07-03-2022

International market

Space in which commercial operations are carried out in more than one country.

What is the international market?

The international market is that market or space in which commercial operations are carried out, such as the sale and/or purchase of goods, the exchange of services for money, among others, in more than one country, that is, this type of The market has a range of operation without geographical limitations.

Therefore, the international market is that environment in which certain needs are met through an exchange of goods or services, usually for money, worldwide.

In this market, economic agents actively participate by performing various activities such as offering goods or services, buying or selling products, etc. The most relevant factors that must be studied in a market are: the good or service to be offered or acquired, supply and demand, stability, distribution channels and prices, population, country or territory, among others.

The internal factors belonging to the market are affected by the actions carried out by the economic agents that participate in it, in such a way that they can modify the supply or demand of goods or services based on their needs or by establishing prices.

International markets are governed by international trade laws that are issued by the World Trade Organization (WTO). This entity is in charge of regulating and controlling commercial activities that take place between countries.

Characteristics of the international market

The main characteristics of the international market are listed below:

  • Economic agents actively participate in this market.
  • It operates globally, therefore two or more countries participate.
  • It is regulated by the World Trade Organization(WTO).
  • It contributes significantly to the economy of the countries involved.
  • Promotes cultural and social exchange between countries.
  • In this market, you can exchange bondsshares, goods, or services, among others.
  • It operates with different currencies which are their own, according to each country involved.
  • The activities carried out in this market increase the country's exports or imports.

Examples of international markets

Some examples of international markets are listed below:

  • A Dutch company, a shoe manufacturer, acquires 2 tons of supplies from a distributor located in China, which is responsible for supplying supplies to several companies worldwide.
  • A computer assembly organization received a large order from a private company located in Russia.
  • An organization in charge of manufacturing textile products decided to export 22,000 high-quality pieces to Peru, in order to expand into the international market.
  • A Spanish company dedicated to refining oils decides to import a large order of olives from Italy in order to improve their quality.
  • An Italian glasses merchant exported 200 units to Ecuador.
  • A company in charge of agricultural work signed a contract with two German restaurants in order to distribute their products to them periodically.

 

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