Prices in external trade

Abstract

External trade statistics play an extremely important role in the administered and planning processes, of most economies. The "basic data produced is these statistics consist mainly of quantity, value, provenance, and destination of the internationally traded goods. The relationship between quantity and value is of immediate interest to us because of the latter's dependency on prices. In external trade statistics price is important because it acts as a barometer of the domestic as well as of the international trading position and also plays a very important part in the allocation of resources. The importance of prices even extends into the area of international relations; the various situations of conflict and confrontation, relationships between the poor and the rich countries and negotiations between the suppliers and consumers of raw materials. All these must be mentioned here because they are related to the new international economic order.