International Trade and International Logistics

Last Updated: 14 May 2021
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International trade and international Logistics The rapid expansion of trade liberalization and the growth of global capital markets and integration, information technology and the progressive development of communication technology, making the original messy market countries and regions gradually evolved into a unified global market.

Worldwide production and management of multinational corporations or foreign trade enterprises in order to achieve competitive advantage, increase their profits, so they must adding their power within the scope of the global co-ordination of resources to arrange the logistics of its production activities. However, due to the consumers around the world have different needs, coupled with the longer distance of transportation and supply chain operations to expand making the world become increasingly complex logistically activating.

So how to solve the contradiction between the global market growth and global diversity and global logistics supply and marketing channels, this complexly problem has become an international trading activities of every company to force in solving it. The relationships between international logistics and international trade International logistics development together with the development of international trade; there is a very close relationship between them.

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To achieve international trade, the completion of goods from one country to another country and to the customer’s designated locations, these are the reason why we have to achieve international logistics Therefore, international logistics is not only to ensure the international trade, but also the supply of commodities cross the borders the borders to the needs of States. it is a physical flow process in space, in time, and entities The entire process of international logistics, including the exporting country's export goods leave the country, it has been entered into the importing country's border .

Before explaining the relationship between them, first we note by the definition, what is the international trade and modern logistics: International trade is technical exchange of goods and services between countries or regions, including both imports and exports, from a national point of view, this exchange activity is called the country's foreign trade, from the international frame of reference , The world's total foreign trade plus together constituted the international trade; About the logistics, according to the definition of Logistics Association American, logistics is a network of interconnected businesses involved in the ultimate provision of product and service packages required by end customers, ps all movement and storage of raw materials, work-in-process inventory, and finished goods from point of origin to point of consumption.

The following will specifically analyze the relationship between them. International trade promotes the development of modern logistics It is basic prerequisite of survival for modern logistics, also promote its international. And the International trade and modern logistics are two indispensable aspects of the world's development, international trade make the ownership of goods exchanged, and modern logistics are embodied in goods between countries or entities in the transfer of its domestic. They Promote each other, interdependence and mutual restraint each? Modern logistics is developing based on the modern international trade, Efficient operation of modern logistics also promoting the development of international trade, in this case, the international logistics have emerged, which has brought the logistics industry

 International Logistics is a necessary condition for international trade Worldwide community large-scale producing would inevitably lead to the different international division of labor, because of the increasing of the international division of labor getting refinement and specialization, there must be a kind of international cooperation and exchange between countries, thus requires the conduction of international trade to adapted with international logistics, to deliver whatever overseas customers Need, transfers the goods to the destination according to the quality and quantity timely and by appropriate manner at low cost, by this way to improve their customers products in the international market even more competitiveness and expand the foreign trade,

While also imported into the country needed equipment, supplies and other goods timely, efficient at low cost, to satisfied the people's livelihood, production, construction, science and technology and economic development needs in domestic. International Trade also promoting the Logistics to International Transnational business and international trade development, promoting the goods and information extensively exchange of a large number of flows in worldwide, international logistics became an Inevitable trend way of develop the international trade and world economic. On another hand, international trade is a prerequisite and infrastructure for the survival of international logistics, the Development of international trade determine the speed and scale of the development of international logistics, and now day’s international logistics became more scientific and reasonable, it’s also a beneficial protection of international trade development. International Trade brings new demands on logistics:

With the rapid development of world economy and the performance of some new trends and characteristics in international trade, such big steps made  the newer and higher demands on logistics. Quality requirements: The structure of international trade is undergoing some tremendous changes, Traditional primary products and raw materials and other trade goods gradually giving way to those high-value and precision machining products. Due to the high value-added, high-precision flow of goods increased, At the same time the diversity of demand in international trade, resulting in the logistics getting more variety, small batch, which requires international logistics developing To even more quality services and diversification. Efficiency requirements

The concentrated expression of the international trade is entered into the contract and to perform it, but the Performance of international trade contract is to complete by the international logistics activities, Therefore it requested the logistics to carry out the contract more efficiency, Hence the management of logistics need to be more strengthen, According to international trade in different commodities, by Corresponding the giant cargo ship? Berths and large professional machinery transport equipment to Improving logistics more efficiency Safety requirements As the international division of labor and professional development of social production, Most of the goods are distributed and produced around worldwide, for example, the U. S. brand Ford, a car production needs its raw materials, Spare parts in more than 30 manufacturers in 20 countries, products are sold to more than l00 countries and regions.

The logistics involved in lot of countries, vast territory and in a long time transit, and also Great impact of climate conditions? Geographical conditions and other natural factors and also Politics, the workers strike events? war and other social, political or economic factors. therefore,we must pay a lot of attention to the climate conditions, geographical conditions even political situation, economic conditions, when organizing and selecting the transport routes and the mode of transport to passing through different regions in international logistics, To prevent the loss of goods caused by human factors and the irresistible forces of nature Economic requirements

The characteristics of international trade, Determined the international logistics have lot of procedures and long period for Preparation and transportation. In the field of international logistics lower the transport and vehicle select costs is the best cost control solution for those international logistics companies. Improve the logistics economy, reduce logistics costs and guarantee the service quality, is an effective way to enhance competitiveness The efficiency and reliability of international logistics Logistics involved in a wide field, including material management in production areas, transportation, and the distribution and consumer services in Circulation areas.

Rapid economic development in today's world is getting faster and faster, the developed countries are all constructing the new world economic structure by using the strategy of "economic globalization”, “information highway" and "international logistics network, " The growth rate of international trade even higher than the rate of world economy growth. Through the development of international trade, international logistics could continuous improving and developing. Truth has proved that international logistics as a tool of international trade, countries must maximize broken down the geographical and national boundaries, in order to maximize the reduction of the cost of international logistics.

On the other hand, international trade is a prerequisite for the survival of international logistics and infrastructure, international trade determine the speed and scale of the development of international logistics development, and the international logistics getting scientific and reasonable development is beneficial to secure the international trade? Logistics on the international role in promoting economic development on the expansion of multinational companies have to verify already. there are About 45,000 global multinational companies currently, their production and trade value has about 50% of world trade value, the tentacles They stretch to the global market is logistics industry. just in-time and zero inventory Became the corporate goal forever, the U. S. ogistics industry had establish an efficient supply chain already, some companies, such as Dell, the order from company confirmation to make the shipment of goods only 2-3 day,

As the depth of modern logistics services, process length, the increasing breadth of coverage, to improve the production, supply, marketing, overall economic benefits of transport and promote the development of world economy and the role of trade is immeasurable, the Development of modern logistics brings three advantages to the International trade; That reduce the overall cost of international trade? Improve its competitiveness on the core business? Reduce investment in trade activities. conclusion he free trade, except brings benefits to both parties of the trade, also brings additionally positive impact on the existence of multiple Technological innovations of their own,

As mankind enters the era of knowledge economy and trade liberalization in the mainstream situation, in a static sense, the level of technological innovation in developing countries will affect their trade pattern, size and interests; in the dynamic sense, international trade will affect the overall technological level and economic growth, In fact, only from the terms of the relationship between international trade and technological innovation, they are interacting each other; but for most developing countries, International Trade and the impact of its technical innovation should be more specific and profound, Because of international trade-related technical innovation in developing countries shows the way and play its "advantages of late launch “ Strategy and also a important means of bring them into the growth and take-off stage of economic.


  1. http://www. trade. gov/exportamerica/TechnicalAdvice/ta_tradelogist101. pdf TRADE LOGISTICS 101’[PDF], By William Corley. August 2002 EXPORT AMERICA
  2. http://en. wikipedia. org/wiki/Logistics. ‘International logistics ‘second edition 2006 By Donald F. Wood, ISBN: 0-8144-0666-1 Pg. 126 to Pg. 169.
  3. ‘International logistics: global supply chain management’ 2003 By Douglas C. Long 2003058808 Pg. 225 to Pg. 231

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International Trade and International Logistics. (2018, May 03). Retrieved from

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