International Trade And Tourism

INTERNATIONAL TRADE AND TOURISM A. Definition of International Trade In general, international trade is defined as a mutually beneficial exchange of goods or services between one country and another. International trade is more complex than domestic trade, because international trade crosses customs boundaries and national territories. Meanwhile, each country has its own currency, its own economic system, its own customs rules, trading system, measurement or weighing system, and different quality standards. B. Factors causing international trade The following are several factors that cause trade between countries, namely: 1) Differences in resources owned. The differences that each country has, such as differences in geographic location, geological conditions, topography, climate in countries in the world, natural wealth, and production encourage the people of each country to be able to meet each other's needs and fill each other's deficiencies. each country to achieve prosperity. 2) Differences in the quality of the population in terms of education, economics, social and culture. 3) Development of communication systems and transportation facilities. 4) The existence of production specialization. Each country tries to produce goods in accordance with the level of special features that each has, either naturally or technologically, so as to produce absolute or comparative advantages. C. Benefits of international trade There are many benefits to be gained from international trade. The benefits of international trade include the following: 1) To meet the need for goods/services. Goods/services that cannot be produced in a country can be obtained by trading with the country that produces the goods/services. 2) Can get goods/services at cheaper prices. The costs of producing a type of good/service are not the same in every country. There are types of goods that a country can produce at prices that are much cheaper than the costs incurred in other countries. 3) Encourage domestic economic activities. Opening trade between countries will encourage each country to increase production or expand its business. Apart from that, other businesses related to trade between countries will emerge. For example, transportation, storage, advertising, packaging, etc. 4) Expanding employment opportunities. With the increase in economic activities in the country, employment opportunities are becoming wider and more diverse. 5) Is a source of income for the state. Through export-import activities, government income will increase through export taxes and import fees imposed on goods traded. 6) Increase the number of goods and quality of goods. 7) Obtain benefits from specialization in the form of comparative advantage and increased prosperity. 8) Increasing productivity and production efficiency, which basically originates from economies of scale in the production process, new technology and competitive incentives. 9) Improve the exchange process between countries. 10) Increase the country's foreign exchange. 11) Encourage healthy competition which in turn gives rise to technological development. 12) Increasing market expansion (production-consumption). D. Barriers to trade between countries There are many obstacles and problems faced in foreign trade. Of the various problems listed below, several main problems are mentioned, including the following: 1) Threat of war. This threat is the most serious for foreign trade. That is why, every country tries not to depend on trade with other countries. Because if there is a war, the economies of the countries involved in the war will experience bad consequences. 2) Differences in wage levels. Countries that have relatively cheap labor costs will naturally be able to sell their goods on the international market at relatively cheap prices. This will kill a country where labor is expensive. 3) Regulations/policies of other countries. Every country tries to protect its domestic economy from the influence of international trade. To protect a country's economy, the government can issue various kinds of regulations/policies. The actions that have often been taken are in the form of protection, namely efforts to protect domestic industries. There are various forms of protection, including the following. 1. Tariffs and import duties: The imposition of high tariffs/import duties on foreign goods will result in the price of these goods being less competitive with domestic goods. 2. Import prohibition: Production from abroad is absolutely not allowed to enter the domestic market. For example, the price of shoes made in Indonesia is much cheaper than the price of shoes made in Malaysia. However, because the Malaysian government prohibits imports, Indonesian shoes cannot enter the Malaysian market. 3. Export ban: Domestic production cannot be sold to foreign markets at all. For example, the Indonesian government once banned the export of raw rattan abroad because rattan furniture made in Indonesia could not compete with rattan furniture made abroad. Even though the rattan comes from Indonesia. 4. Quotas: Quotas are restrictions on the number of imported goods that can enter the country. 5. Subsidies: Subsidies or government assistance are intended so that domestic producers can sell their goods cheaper, so they can compete with imported goods. 6. Dumping: This policy is a form of price differentiation between those that apply domestically and abroad. Countries that export their goods to other countries' markets charge prices that are cheaper than prices within their own country.