International trade is the exchange of goods and services between one country and another. In most countries such trade represents a significant share of gross domestic product (GDP).
International trade has been present throughout much of history, starting from the Mediaeval Silk Road or the Transoceanic Trade between Europe and America during the Modern Era, after Europeans arrived to America.
Different criteria are used to classify industry. Here are the most widely used classifications.
High-technology (or high-tech) industry refers to industries whose processing techniques usually involve micro-electronics.
Characteristics:
Also called basic industry. It transforms raw materials into semi-finished products that are then used in other industries, and includes mining and energy production.
Characteristics:
In the first quarter of 2014, exports in the Basque country grew by 5.4%, according to EUSTAT data. The exports were 5. 576 billion euros, while the imports maintain the total of 4.246 billion euros. From these data it can be gathered that in this period the trade balance of the BAC was positive and showed a surplus of 1.330 billion euros, with a coverage rate of exports over imports of 131.3%.
In relation to GDP, our exports reach 30.10, a similar rate to the United Kingdom (31.9), Italy (30.0) or France (28.0) and imports stand at 21.90. Therefore, our foreign trade balance is 8.21. In this way, we take sixth place in the ranking, similar to Iceland (7.8) and the Netherlands (9.8).
By sectors, industry has the greatest weight in both communities, In the Basque Autonomous Country and Navarra. In the BAC 60% of the exports belongs to automobile, machine-tool and other mechanical apparatus, foundry products, iron, steel and rubber.
As regards to the Autonomous Community of Navarre, the main sector is the automobile sector and within this the automobile parts and accessories sector, followed by boilers and mechanical apparatus.
In the Basque Country this activity is divided into the following sub-sectors: shallow-water, deep sea-fresh water, cod fishing boats, tuna fishing-freezer boats and trawler-freezers. In the Basque Autonomous Community, the number of boats dedicated to these sub-sectors has suffered a clear drop after 1990, except in the tuna fishing-freezer boats, which has stayed the same. The most important deep-sea fishing ports are Ondarroa (Biscay) and Pasaia (Gipuzkoa). The shallow-water fishing, on the other hand, is an activity which is present in all the ports of Biscay, Gipuzkoa and Lapurdi.
The primary sector takes natural resources directly from the land or sea and satisfies many of our most basic needs.
The good of the primary sector can be used for nutrition, for food, or can be raw materials to make other products , for example wool to make pullovers, or coal for energy .
The sector involves many different activities such as agriculture and livestock farming, fishing, mining and forestry.
Regions sustained by commercial farming specialise in certain crops.
Most European farms are medium-sized family enterprises that require large capital investments. High standards of living mean that farms employ temporary labour.
In the part of Europe with an oceanic climate, meadow lands are exploited under intensive cattle raising. Cattle raising is found in all landscapes, especially when in the past the cattle was essential for fertilising fields. They are privately owned lands, and exploitation may be direct or indirect. In warmer regions, we may find vineyards and orchards.
In other regions there is no change and traditional farming is maintained: olives, wheat and vineyards.
In urban areas, vegetables and fruits for town markets are the main products and usually are multi-crop farmings.
In some areas such as United Stated or some regions of Russia, this commercial farming is done in large areas. These farms are family businesses that do not require a large workforce but are managed as companies.
Crops are produced for the market, not for home consumption.
In North America farming is extensive with complete mechanisation. It covers wide areas and cultivates crops appropriate to each region: what, maize, cotton, tobacco. Land productivity is not high but production is cheap, because they use little labour and a lot of machinery.
Property is privately owned and cultivation is direct. Agriculture uses all the mechanical, technical and scientific advances required by the green revolution. They achieve great profitability although they make the biggest money investments in the world to attain it.
Single-crop cultivation predominates.
The Russians regions show a similar landscape. They are large exploitations with a lot of mechanisation. Single-crop farming is specialised region by region.
It transforms semi-finished products done by heavy industry into finished goods and products for use in other industries.
Characteristics:
There are different reasons for locating industry in a specific place, and these vary depending on the type of business and their characteristics.
Raw materials: If an industry needs many raw material to be near them can be very important especially to some basic industries that use lots of mineral.
