Activity 1 Basic concepts in foreign trade
ACTIVITY # 1.
HISTORY AND BASIC CONCEPTS OF FOREIGN TRADE
FOREING TRADE
Exchange of goods and services between two or more countries to export (sell products in which we are competitive) and import (buy products in which we are not competitive), the objetive of these nations is to be present in the entirety of the world economy.
HISTORY OF ECONOMIC INTEGRATION
From the second half of the 19th century until the First World War, Great Britain was the leading nation in international trade with a system based on free trade, without tariff barriers, without obstacles to the movement of workers and capital.
The world economic crisis unleashed by the depression of 1929, accelerated the fall of the trading system, which is why countries began to apply protectionist policies such as the increase in customs duties and the imposition of obstacles to imports.
In 1930, the United States enacted the Smooth Hawley Act, increasing the tariffs of 900 items. Likewise, Great Britain abandons the gold standard (1931) and passes the Import Duties Act (1932).
In 1934, the US ratified the Reciprocal Trade Agreements Act and began a trade policy based on the negotiation of bilateral agreements that were based on the "principle of reciprocity".
MULTILATERAL ORGANIZATIONS
They are linked to international relations and made up of three or more countries, to work together to maintain relations between countries that make up the planet 
and have the mission to create common policies and solve problems that involve them.
The end of the first World War, prompted the birth of multilateral organizations, and already with the Second World War, when the order of the world could poblably be at risk, given that it was divided into two well confronted blocs, the need arose for the creation of these organisms.
Among the main Multilateral Organizations, we can highligth the United Nations (ONU), The international Monetary Fund (IMf), the World Bank and the World Trade Organization (WTO), among others.
International Monetary Fund:
Born within the framework of a convention of another multilateral organization, such as the Unied Nations, in 1945. Its main objectives are to avoid financial crises in the monetary systems of its member ststes, the promotion of sustainable exchange policies and cooperation at the international trade, the opening of international trade and the reduction of poverty in all those countries.
Born within the framework of a convention of another multilateral organization, such as the Unied Nations, in 1945. Its main objectives are to avoid financial crises in the monetary systems of its member ststes, the promotion of sustainable exchange policies and cooperation at the international trade, the opening of international trade and the reduction of poverty in all those countries.
- facilitates and grants financial resources to those members that present problems in their balance of payments.
Organization of the United Nations: 
They Were born on October 24,1945, they have 193 member states, the countries meet freely to work for the peace and security of the people as well as to fight against poverty and injustice throughout the world.
They Were born on October 24,1945, they have 193 member states, the countries meet freely to work for the peace and security of the people as well as to fight against poverty and injustice throughout the world.
The World Bank:
World Trade Organization (OMC):
It is the only international organization that deals whit governing trade between countries, agreements have been negotiated and signed by the different countries that participate in world tarde and ratified by their parliaments, aid to producers of goods and services to carry forward their import and export activities. the agreements of the WTO are extensive because they are a great variety of legal texts that cover a great amount of activities; all these texts constitute the base of the world -wide system of the commerce.
It is the only international organization that deals whit governing trade between countries, agreements have been negotiated and signed by the different countries that participate in world tarde and ratified by their parliaments, aid to producers of goods and services to carry forward their import and export activities. the agreements of the WTO are extensive because they are a great variety of legal texts that cover a great amount of activities; all these texts constitute the base of the world -wide system of the commerce.
ECONOMIC INTEGRATION AGREEMENTS
Bilateral Agreement: There is a bilateral agreement when two members (normally two sovereign nation) decide to reach a consensus in relation to a specific aspect. This type of agreement is embodied in a binding document, for which both nations are obliged to comply with in.
The agreement reached has one characteristic: it is beneficial for both countries. Normally, the agreement refers to a specific are: sconomic, cultural, employment or of any other nature.
Multilateral Agreements: Treaties signed by several States in order to end a conflict or dispute or initiate an alliance or other form of cooperation.
The most important agreement for the contemporary world is the Charter of the UN. Multilateral agreements are the subject of treaty law.
Regional Integration Formulas: These agreements deal with more ambitious objectives such as the formation of a single market, this generates a tendency for the world economy to move to the economically integrated regions, in order to reduce and remove tariff and non-tariff barriers that allow the free movement of goods and services between the countries involved.
CONCLUSIONS
- Foreign trade is governed by rules, treaties and agreements between the different countries, which promote commercial, economic, financial and political relations, promoting the exchange of goods and services that boost the economy.
- International trade enables nations to stand out for their own production destined for exchange, in order to obtain profits whith said transactons, increasing their productivity and improving manufacturing costs.
- Thanks to international trade we can acquire producst and services from other countries that develop them in a more efficient way, thus we can specialize in the production of those articles in which we have an advantage and value overseas.
BIBLIOGRAPHY
- Ramírez, C. (2010). Fundamentos de administración. Manifestaciones de la administración en la edad moderna y en la época contemporánea. Capitulo 12. (3a Edición).
- La economía de mercado. Grados de integración económica. Recuperado el 15 de abril de 2018 de http://www.juntadeandalucia.es/averroes/centros-
- Universidad Icesi. Integración económica. Recuperado el 15 de abril de 2018 de http://www.icesi.edu.co/blogs/icecomex/2008/10/24/integracion-economica/
- Husillos, M. Integración económica. Recuperado el 15 de abril de 2018 de http://economipedia.com/definiciones/union-monetaria.html
- Extraído de :https://www.eadic.com/que-son-los-organismos-multilaterales/#:~:text=Los%20organismos%20multilaterales%20son%20organizaciones,pa%C3%ADses%20que%20integran%20la%20organizaci%C3%B3n.
- Extraídode: https://www.icesi.edu.co/blogs/icecomex/2008/10/24/integracion-economica/
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