Publications

 
The role of international trade in world economic 
development
The birth of the international trade organization WTO 
succeeds and expands the scope of international trade 
regulation of the predecessor organization, GATT - the 
general agreement on trade tariffs, the world witnessed a 
stage of development. With the strong growth of 
international trade, the volume of goods exported to the 
world market continuously increased in the period from 
1990 to 2013. By 2010, when the world came out of the 
economic crisis, world trade had strong growth trend. 
Aggregate statistics of 70 economies accounting for 90% of 
global trade shows that the value of global merchandise 
trade in the last quarter of 2010 has increased by 25% 
compared to the first quarter of 2010, of which exports by 
26% and imports by 25%. Commodity values rose the most 
in Asia. International trade is the engine of economic 
growth: GDP of a country is determined by the expenditure 
method and product flows by the formula: 
GDP= C + I+ G + (XM) 
Thus, according to the formula, the total national income 
depends greatly on the import and export activities (or 
foreign trade) of that country. Especially exports, but 
exports are dependent on imports, so solving the relationship 
between exports and imports is a complex issue but very 
important because it will have a positive or negative impact 
on growth. economic growth and development. Exports are 
related to foreign currency receipts and imports are related 
to foreign currencies. Therefore, import and export activities 
affect the monetary fund of the country, thereby affecting 

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International Journal of Advanced Multidisciplinary Research and Studies 

www.multiresearchjournal.com

 
721 
the aggregate demand of the whole economy. If net exports 
are positive, aggregate demand will increase, and if net 
exports are negative, aggregate demand will decrease. The 
increase in aggregate demand causes the economy to 
increase, international trade to develop, the market to 
expand, allowing increased specialization in production, 
adoption of new technologies, encouraging inventions, 
improving labor productivity, leading to an increase in 
aggregate demand. national product. It also allows countries 
to expand production on the basis of profound 
specialization. Since then, foreign trade allows countries to 
expand the production possibility frontier to move further 
away from the old production possibility frontier. If import-
export activities are stable and the balance of payments is 
safe, it will help stabilize the macro-economy of a country, 
create a favorable business environment for businesses, and 
feel secure to do business and live for them. citizen. 
Contributing to creating jobs, improving incomes and actual 
living standards for all classes of people 
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