Some important characteristics of foreign trade are described below:
- Exportation of raw materials :
The main characteristics of foreign trade are exporting raw materials. The maximum number of exporting trade comes from raw materials and agricultural goods. Such as raw jute, fish, tobacco, tea, leather, etc.
- Importation of industrial products:
Another characteristic of foreign trade is importing industrial goods. The importing goods are factory machines, Ispat, petrol, coal, cement, medicine, chemist goods and so on.
- Importation of food product:
Food importing is one of the best characteristics of foreign trade. Every year many countries importing food items as they are unable to produce these items.
- Export of handful goods:
Many countries exporting a handful of items to other countries. A huge amount of export revenue comes from ready-made garments, jute and jute made products, tea, leather, frozen foods, etc. actually, many countries depend on their handful of items.
- Trade with a handful of countries:
Many countries trade is limited in the UK, USA, India, Russia, Japan, Canada, German.
- Trade with dollar and starling area:
Many countries exporting are higher than importing in dollar and starling area They do that for earning much higher than others.
- The number of export is higher than import:
Another characteristic of foreign trade is exporting is higher than imports. Many countries are importing only a handful of items to foreign countries. But these countries have a large number of exporting than importing. Many countries are exporting starting with food products to industrial types of machinery and raw materials and many industrial goods items.
- Establishing good trade relation in neighboring countries:
Another characteristic of foreign trade is building good trade relations with neighboring countries. For example, after getting the freedom, India is trying to build its good trade with its neighboring countries such as Bangladesh, China.
- Establishing good trade relation in SAARC countries:
It is a good sign to build good trade relations in the same economic zone so that they can help each other. That’s why SAARC included countries are trying to build good relationships in their regional countries.
- Reduction of importation of luxurious goods:
The reduction of the importation of luxurious goods is another characteristic of foreign trade. After getting freedom, the Indian government is trying to reduce the import of luxurious goods. This country is trying to give more priority over exporting industrials goods, essentials goods, raw materials, types of machinery, and so on.
- Import of manpower:
Importing manpower is another characteristic of foreign trade. From the very beginning of international trade, many countries are importing manpower in the Middle East categorizing skilled, semi-skilled, and unskilled. Moreover, many countries are earnings of many foreign currencies by importing manpower.
- Wages earner skim:
Wages earn skim is getting change day by day. It is another characteristic of foreign trade. Under this skim, many expatriate exporting many foreign items by earning foreign currencies.
- More trade by water:
Maximum foreign trade is done by waterway. 90% of foreign trades are done in water land in Bangladesh. Only India, Myanmar, and Nepal do their trade-in road transportation way.
- Balanced in favorable transactions:
Balanced in favorable transactions in foreign trade has a good impact on further transactions. Many countries have more exporting than importing. in fact, there are many invisible cost need to do such as foreign ship rent, air cost, insurance cost, foreign education and traveling rent. For these reasons, many countries have favorable balanced transactions.