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International Transport Systems in Facilitating International Trade

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The advent of sea-transport, thus, heralded a manifold increase in intercontinental trade. Similarly, today, the winds of globalization, sweeping across the world, are giving an exponential increase in the volumes of goods being traded internationally. The reductions in tariffs or creation of no-tariffs regime have also led to a surge in global trade volumes. Needless to say, that volume of tradable goods increases with an efficient transport network. International trade requirements, too, put pressure on the transportation systems for efficient, smooth, fast and bulk movements of commodities. Earlier, transport industry witnessed a boom in the 1980s, consequential to major deregulations initiatives in the sector. The complex nature of international transport requires a high level of command structure in handling flow and distribution of goods. Three components of international transportation that facilitate trade are transport infrastructure, transportations services, and transactional environment. Transport infrastructures include terminals, vehicles, networks, and warehouses. Transportation services include activities like distribution, logistics, finance, insurance, and marketing. The transactional environment is the legal, political, financial and cultural setting in which international transport systems operate. Other than such aspects as exchange rates, regulations, tariffs, and quotas, it also includes consumer preferences (Rodrigue, 2009). The transportation industry is a diverse sector spanning across multiples modes and different forms of transport. Transportation entails ferrying commodities, goods, and people from one location to another through air, sea, and land.