Neighboring States Participation In International Trade

Foreign trade is a vital indicator which shows state ability in productivity and competition inside international market. This indicator is related to this ability in exportation and income levels as well as its ability in importation and how is this reflected upon the state account from foreign currencies and the effects upon trade balance. Trade relations among geographical neighboring states have remaimed weak and suffered from problems inspite of its joint history and being Islamic states but they still suffer from economic problems and the weakness of its structural productivity. They export oil and need so many types of goods not produced but imported from other states like agricultural goods and modern technology. Therefore, these states should coordinate its efforts and to be specialized in certain field. Producing few goods in these states might lead to severe competition without getting positive results.