Domain: International Business
This report presents a study of overall importance trade in an economic framework of country,
especially in a developed economy like U.K. The growing importance of trade in accelerating the
growth of the country is the core reason behind presenting this report. This paper has a dual aim.
It provides a brief understanding of the role of trade particularly in UK and then realizing the
importance of exports and imports in a brief context towards the well being of an economy. The
paper starts with evalution of basic concepts of trade like open and closed economy, balance of
payments, terms of trade, comparative and absolute advantages with relevant examples and their
significance on the EU business. The introduction of single currency Euro (€) and its gaining
successes in trade has been also studied in the report. The benefits derived from a country having
liberal trade policy are evaluated in the later section of the study in contrast to the protectionism
policy that are being followed in order to promote domestic goods and services are studied.