International share trading

International trade is the exchange of goods and services between countries. This type of trade gives rise to a world economy, in which prices, or supply and demand, affect and are affected by global events. Political change in Asia, for example, could result in an increase in the cost of labor, thereby increasing the manufacturing costs for an American sneaker company based in Malaysia, which would then result in an increase in the price that you have to pay to buy the tennis shoes at your local mall. A decrease in the cost of labor, on the other hand, would result in you having to pay less for your new shoes.

The foreign exchange market might seem to some people very similar to other financial markets. On the surface, the forex exchange has many similarities to the stock exchange. However, there are a number of differences. Below is a breakdown of some of the major differences that might not be obvious to everyone.

International trade allows us to expand our markets for both goods and services that otherwise may not have been available to us. It is the reason why you can pick between a Japanese, German and American car. As a result of international trade or share tips the market contains greater competition and therefore more competitive prices, which bring a cheaper product home to the consumer. 

However, if you want the most straightforward exposure to an international market, it is hard to beat an exchange-traded fund (ETF). These are trackers that follow the major stock market indices and sectors across the globe. Since there are over 500 ETFs, we could not list them all, so we have focused on the dozen or so that trade out of London. With one of these, a £12 dealing fee and an annual charge of 0.59 per cent buys you into the whole of the Japanese stock market. I bet your dad could never do that.