Pacific Trade Perspectives

Abstract

The entire international trade of the world consists of the reciprocal export and import of goods and services between countries, where to speak of a particular country’s trade balance is to indicate the difference between its exports and imports on the basis of one suitable measure or another. A positive trade balance indicates that exports are larger than imports, whereas a negative trade balance indicates that imports are larger than exports (International Monetary Fund, 2003). International trade includes a large portion of transfers between related business firms, giving rise to the phenomenon of International Transfer Pricing.