A retail company like GWC Valve should be aware of the important of international trade since many of their clientele are international clients. There are different important terms to remember when it comes to measuring trade between nations and these include a balance of trade which is the difference between a nation’s exports and imports, a balance of payments which involves the overall money flows into or out of a country, the balance of payments surplus is the more money into a country than out of it and the balance of payments deficit is the more money out of a country than into it.

When it comes to the different barriers to international trade, these include first the different global businesses, to the social and cultural barriers such as languages, values and religious attitudes, to the economic barriers such as currency shifts to the legal and political barriers such as international regulations and trade restriction then this all leads to the free markets. There are different types of trade restrictions that can arise including tariffs which are basically taxes, surcharges or duties on foreign products. These include revenue tariffs that generate income for the government, and protective tariffs raise prices of imported goods to level the playing field for domestic competitors. There are also nontariff barriers that can also be called administrative trade barriers and along with these there are quotas which is a limit set on the amounts of particular products that can be produced, there is also the concept of exchange control which is a restriction on important certain products or a restriction against certain companies in order to reduce trade and the spending of foreign currency. A dumping is the selling of products in other countries at prices below production costs or below typical prices in the home market. An embargo on the other hand is a total ban on important certain products or a total stop to trading with a particular country.