What is meant by foreign trading system?

Answer 1

Foreign trade can be considered a number of different things, depending on the type of trade one is talking about. Generally speaking, foreigntrade means trading goods and services that are destined for a country other than their country of origin. Foreign trade can also be investing inforeign securities, though this is a less common use of the term.

Foreign trade is all about imports and exports. The backbone of any foreign trade between nations are those products and services which are being traded to some other location outside a particular country's borders. Some nations are adept at producing certain products at a cost-effective price. Perhaps it is because they have the labor supply or abundant Natural Resources which make up the raw materials needed. No matter what the reason, the ability of some nations to produce what other nations want is what makes foreign trade work. In some cases, the products produced in a foreign trade situation are very similar to other products being produced around the world, at least in their raw form. Therefore, these products, known as commodities, are often pooled together in one mass market and sold. This is calledtrading commodities. The most common commodities often sold in foreign trade are oil and grain.

Answer 2

A foreign trading system refers to the processes and infrastructure that facilitate the trading of goods and services between different countries. It includes aspects such as import and export regulations, trade agreements, customs procedures, currency exchange mechanisms, and international trade organizations. Overall, it encompasses the various elements and practices involved in conducting cross-border trade.