Trade, especially foreign trade, has increased tremendously in the last 100 years due to several reasons. Mass production and the greater use of machinery in developed and developing countries have resulted in an increased production of goods which have to be distributed to final consumers at home and abroad. The emergence of the developed countries as suppliers of primary raw materials has helped to satisfy the needs of both. The developing countries sell their raw materials to the developed countries and buy manufactured goods from them.

Improvements in communication, e.g. postal, telegraph, telephone, telex, and satellite and computer service have promoted quick and easy contact between traders from different countries. Improvement in transport is another reason why trade has increased. The construction of bigger, faster cargo liner container ships and supertankers which are capable of carrying specialized bulky cargo and perishable like meat under refrigeration has facilitated trade by sea. The construction if rail rods and new roads have surely extended the market for goods and services.

Improved standards of living and rising consumer expectations all over the world have meant an increase in imported consumer goods. Development of international systems of banking has facilitated payments in foreign trade. Letters of credit have helped to provide the necessary bridging finance for the importer while ensuring that the exporter will get immediate payment form the bank on surrender of the necessary shipping documents. These documents certify that the goods have already been shipped according to the terms of agreement with the importer.

The efforts of governments to provide trade, such as the sending of trade mission overseas, participation in international trade fairs, and the setting up of permanent trade representatives overseas have enhanced trade. Governments like those Malaysia and Singapore have also made available to exporters export credit guarantee insurance. This facility not only gives the exporter coverage against loss due to political developments overseas but also enables him to obtain credit more easily from commercial banks. In order to encourage entrepot trade, the Singapore government has kept Singapore a free port.

The efforts of the International Monetary Fund in trying to maintain some kind of stability in the rate of which currency of one country is exchanged for that of another have promoted international trade. Frequent and unprecedented changes in the rates of exchange between currencies do, to some extent, discourage trade. It also makes available a special means of payment called "Special Drawing Rights' " to help facilitate the settlement of international indebtedness between countries.