Exploring international trade in e-commerce.

The growth of the world economy was largely dependent on international trade. Global events both influence and are influenced by supply and demand, and consequently prices, in the global economy.

The cost of labor could rise as a result of political changes in Asia, for instance. This may raise the manufacturing expenses for a US-based shoe firm operating in Malaysia, which would raise the cost of a pair of sneakers that an American customer might buy at their neighborhood mall.

A company that trades internationally can benefit from increased earnings and sales due to a wider pool of prospective customers, reduced competition in untapped foreign markets, diversification, and potential gains from fluctuations in foreign exchange rates. The variations in specific domains within every country give rise to international trade.

International trade is usually driven by disparities in natural resources, wages, government regulations, education, technology, demand, labor laws, and financing options. Increased efficiency from international trade also makes it possible for nations to engage in the global economy, which promotes the possibility of foreign direct investment (FDI). Theoretically, economies can grow more quickly and simply enter the market as competitors.

FDI is viewed by the recipient government as a way to bring in foreign capital and expertise. It increases the amount of employment and, in theory, causes the GDP to grow. FDI benefits the investor by enabling business expansion and growth, which increases revenue.