International Trade in Services in BIC Countries
International trade in services plays a key role in the economic development of a country. Trade in services has grown at a much faster pace than the trade in good for the past three decades. This paper analyzes International trade in services in context of Brazil, ussia, India and China (BIC countries). The paper discusses in detail how these countries have made drastic changes in the world economy by making substantial trade and output gains in the recent years. It also explains the major role played by BIC countries in EU trade in services.
BIC Countries and Services Trade
Geographical Structure of Services Trade
Sectoral Structure of Services Trade
Services Trade in China and India
Trade Balances and Specialization Indices
BIC Countries and EU trade in Services
India -- The Leading BIC nation in Services Trade with UK
International Trade in Services…… [Read More]
International trade has high importance in the economic growth of the country. Even it is not only in benefit of the country's economy but there are number of benefits for the global organization and the overall world's economy as well. Without international trade, it was never possible to reach the success level at which the world is right now.
An international trade is the major source of revenue for the country and so the high percentage of gross domestic product depends on it. Moreover, international trading has also helped in reducing the poverty all over the world.
The main concept of an International Trade can be identified with theory of David Ricardo, an economist: both parties that are individuals, companies or organizations can benefit in trading if goods produced are with different relative costs i.e. one party get goods or services from the other party who can produce it at…… [Read More]
International Trade Theories
International trade may be classified as the trade of capital, goods, and services across international boundaries or areas. In many nations, such trade signifies a substantial share of the country's gross domestic product (GDP). While international trade continues to be present throughout a lot of significant research for trade history (see Silk oad, Amber oad), the fact remains that the over societal, economic and political importance for international trade continues to be increasing even further in recent decades (Samuelson, 2001).
Industrialization, modern and intricate transportation structures, globalization, the presence of multinational companies, and outsourcing are getting increased attention and thus having a significant effect on the international trade system. Growing international trade is vital towards the continuation and growth of globalization. Without international trade, nations could be restricted to the products or services created inside their own boundaries (Samuelson, 2001).
International trade is, in its theory and…… [Read More]
International Trade for odamia
International trade is the exchange that takes place between one country and another. It involves movement of goods, capital and services across the borders and contributes immensely to a country's gross domestic product. It is through International trade that countries have been able to consume a variety of commodities and services that are not produced within their territories in exchange for goods and services that are cheaply produced or are in abundant within a country's territory.
Various factors such as globalization and industrialization have had a significant impact on International trade whereby as countries open up their borders for global trade, this has subsequently allowed trade relations between nations as the quest for industrialization continues. The less industrialized nations have partnered with the industrialized nations whereby the much needed raw materials have been sourced from different countries allowing for trade and opening up of more opportunities.…… [Read More]
To a point, there is no compelling reason under theories of international trade for IT companies to locate their production in Silicon Valley. Many major Valley firms have long since offshored their production, such Apple, Intel, Cisco and more. There is a strong case, however, under the theories of international trade, for IT firms to locate their intellectual hubs in the Silicon Valley. hen the factors for building a successful global firm are considered, it is the competitive advantage that a firm in the Valley would have with respect to gaining access to talent and to capital that point to the Valley; with production the advantages are far less noticeable except in certain specialized cases.
The Silicon Valley can be said to have developed starting even as soon as the early 50s, when Stanford University saw the building of an industrial park that would house General Electric, Eastman…… [Read More]
International Trade and Finance Speech:
Good afternoon ladies and gentlemen, I would like to share with you on the current state of the U.S. macro-economy, highlighting the internal and external factors that affect it. Macroeconomic analysis seeks to forecast economic conditions by monitoring and gauging the behavior of several broad areas including gross domestic product (GDP) - which is simply national output, the rate of unemployment, and the state of currency inflation.
According to the U.S. Department of Energy's Energy Information Administration (EIA), America tops the list of the world's largest oil consumers with a consumption rate of 18.8 million barrels per day (MBD). Concurrently, the U.S. ranks third in the worlds list of top oil producers at 9.1 MBD. The 9.7 MBD shortfall between U.S. oil production and consumption is the main contributor to country's trade deficit (Smith, 2011).
Foreign oil dependence means America's business and consumer trends are…… [Read More]
Each year, globalization plays a more profound role in regards to the national economies of the world. Globalization has allowed for the expansion of corporations beyond their natural domestic limits. As such it has contributed to an increased standard of living for those who embrace its presence. Free trade therefore, is a welcomed addition within the overarching trend of globalization. Free trade allows for the transfer of goods and services when demanded by specific economies. It also allows the countries best suited for such activities to flourish. For example, China is proficient in manufacturing which allows the country to export far more goods than it imports. Developed nations such as Europe, America, and to a smaller extent, Japan demand these cheaper goods as they import more than they export. This trade allows both parties to subsequently flourish. China can sell its products to generate addition funding to expand…… [Read More]
The world appears to be shrinking as the global landscape continues to be developed by technology and new ways of communication. It is inevitable that this new intimacy will have, and has had, a significant impact on the economies of all nations. The purpose of this essay is to discuss the impact of globalization and how it can be used for benefit and gain competitive advantage in virtually any industry or market. This essay will discuss the evolution of the global economy before using a real world example to compare and contrast the differing effects that this phenomenon is manifesting in today's fast paced and hectic world that depends on the goods and services that economic markets provide for humanity.
Globalization and The Drivers of Globalization
Mourdoukoutas (2011) explained that the global nature of the market economies contain great benefit when used in a purposeful and practical manner.…… [Read More]
International Trade and Open Economy Microeconomics
Why there is free trade between states in the United States but not necessary between countries
Trade between states in the United States is not restricted as this may hurt the entire wider American economy. United States in a way restricts free trade between it and other countries for a number of reasons. To start us off, the United States government uses tools like tariffs and quotas to enhance better allocation of resources. Tariffs and quotas other than helping the government generate revenue and discouraging imports into the United States, help in protecting smaller and more vulnerable companies and industries (Worth Publishers, 2010). Quotas basically limit the amount of specific goods that can be imported into the United States. The most common trade restrictions that are normally used in trade between USA and other countries are tariffs and quotas. Apart from generating revenues, tariffs…… [Read More]
I'll Take Four of Those in Blue
International trade is a fundamental tool in building a healthy economy. This does not mean that nations should open their economic borders in an indiscriminate way, for unfettered trade is not in the interest of any particular nation. ather, there are worse and better combinations of free trade, tariffs, and protectionism for any given national economy at any given moment in time. This trade simulation proposes a set of conditions for international trade that are in the best interest of the nation of odamia, as proposed by the trade representative of the country.
odamia's economy is based primarily on the service industry, with two-thirds of the nation's income from this sector, almost a third from industry, and just four percent from agriculture. This is a problematic profile in that arguably the most important function of any national economy is to provide…… [Read More]
Because of the increasingly globalized nature of the economy, manufacturers, retailers and service providers have more options to locate sources of supply and labor where overall costs are lower than in their home markets. In industry today, parts and supplies frequently come from many different countries, such as the Boeing 787, with 65% of its components outsources to foreign companies (Hill 2011). Another example is flat-screen TVs, which have their components manufactured in Asia, assembled in Mexico then shipped to distributers in the United States. Vizio has a small office in California with less than 100 employees to handle sales and service, but with all of the design, manufacturing and assembly done overseas. Even though American companies originally developed this technology in the 1960s, they did not continue with it and forfeited this market to Asian countries (Hill 2011). This has happened time and again in American industry,…… [Read More]
The trade relationship with China can be analyzed from both perspectives of inter- and intra-industry exchange, and major differences are available. In this order of ideas, China is characterized by low income and a scarcity of natural resources. Ergo, their trading operations are dominated by the theory of the comparative advantage, and the necessity to supply the population with complementary products. As a result then, most of China's trading operations occur at inter-industry levels. The East-Asian country possessed a comparative advantage in terms of food and beverages, crude materials or manufactured goods, but a disadvantage relative to beverages and tobacco or machines and transport equipments. The table below reveals the relative comparative advantages (CA) of the two parties in 1998:
Source: Yao and Liu, 2003, p.186
The intra-industry trade operations of the European Union with other countries registered increases generally due to higher living standards and increasing customer demands. As…… [Read More]
The recent change in his designation will put him in greater pressure to display neutrality in such cases as heads WTO.
The role of Brazil in shifting its trade policy from an underdeveloped protectionist Latin American country towards becoming one of the fastest growing emerging economies with trade reforms will also be vital. Azevedo has to ensure that trade violations by Brazil do not go unchecked. Since the paramount responsibility of WTO remains to aid the process of trade liberalization, the role if its leader will be vital. Azevedo's predecessor did not achieve much success in bringing countries to liberalize their trade policies. The 'Doha' round spanning over a period of ten years did not yield much good results as well for the trade liberalization. The other impediments in Azevedo's way are the protectionist policies of Brazilian president ousseff. Higher customs duties and tax incentives were provided by ousseff to…… [Read More]
3.2. International policies
As of 2010, Canada is party to a total of 81 international organizations, as follows: "ACCT, ADB (nonregional member), AfDB (nonregional member), APEC, Arctic Council, AF, ASEAN (dialogue partner), Australia Group, BIS, C, CDB, CE (observer), EAPC, EBD, ESA (associate), ESA (cooperating state), FAO, FATF, G-20, G-7, G-8, G-10, IADB, IAEA, IBD, ICAO, ICC, ICCt, ICM, IDA, IEA, IFAD, IFC, IFCS, IHO, ILO, IMF, IMO, IMSO, Interpol, IOC, IOM, IPU, ISO, ITSO, ITU, ITUC, MIGA, MINUSTAH, MONUC, NAFTA, NATO, NEA, NSG, OAS, OECD, OIF, OPCW, OSCE, Paris Club, PCA, PIF (partner), SECI (observer), UN, UNCTAD, UNDOF, UNESCO, UNFICYP, UNHC, UNMIS, UNWA, UNTSO, UNWTO, UPU, WCO, WFTU, WHO, WIPO, WMO, WTO, ZC" (Central Intelligence Agency, 2010).
In terms of trade organizations which have generated the most impact on Canada's lumber policies and activities, the most reputable institutions refer to the World Trade Organization and the North Atlantic Free…… [Read More]
International trade regulations refer to a set of codified rules and laws that manage, control and regulate all types of trade among different countries of the world. Based on the theory of economic liberalism, these regulations came into existence in the backdrop of World War II. General Agreement on Tariffs and Trade (GATT) was the first multilateral treaty formed to regulate the rapidly rising trend of cross border trade.
The fast economic and industrial growth in Europe and America and expanding world markets created the need for a full-fledged organization to manage international trade. Thus, World Trade Organization (WTO) was established in 1995 under the "Marrakesh Agreement."
The WTO aimed at arbitrating bilateral and multilateral trade agreements, formulating and implementing trade mechanism, promoting free trade around the globe and solving tariff and non-tariff hiccups in international trade.
The world trading system is based on the notion that economic relations form…… [Read More]
According to Staffan Linder, there are two explanations of international trade patterns-one for manufacturers and another for primary (agricultural) goods. Explain.
To resolve the Leontief paradox, Linder proposed a demand-side theory of international trade, suggesting that nations with similar demand patterns develop similar industries, and this is how an international marketplace with differentiated goods develops. Consumers with similar levels of income have similar tastes, and the more affluent the nation, the smaller the proportion of income consumers spend that income on primary (agricultural) goods (Bonham & Nilsson 2006, p.1)
Describe a specific tariff, ad valorem tariff and a compound tariff. hat are the advantage and disadvantages of each?
A specific tariff is levied upon an item as determined on a per unit basis, such as weight, number, length, volume or another unit of measurement. They are usually levied on foods, raw materials, and other input goods but can…… [Read More]
" Until recently, Japan was primarily described as a nation of exports, Eastern Europe was either prohibited by the government or too poor to make use of a wide array of imported goods, and the United States was the world's major exporting power.
hile an end to international trade would certainly mean less immediate choice for United States consumers, the United States would not suffer as much as many other nations in the short-term. The United States consumers would have to do without as much choice of inexpensive cars, coffee and foods imported from around the world, and would also lack a market to export its considerable agricultural produce. The average United States consumer would likely not have to do without goods per se, but might very well have to pay much more for clothing and other goods produced more cheaply in nations such as China and Vietnam, for example.…… [Read More]
The measure implemented is still highly prejudiced and does little to spur economic growth or to regulate trade in an open and effective manner, and as such should be easily defeated by a Panel review.
The need to create accountability, transparency, and to eliminate corruption is a compelling interest of governments and business alike, and the WTO and GATT were certainly not meant to help perpetuate corruption. This does not mean that the United States' decision to impose trade restrictions on Eastasia is automatically justifiable either on the facts or the law, however, and in fact it could be difficult to prove that such a ban is actually in keeping with the articles of GATT and their interpretation. Given the nature of Eastasia's recent development and the corruption inherent to such patterns of development, however, this law and its implementation can likely stand.
First and foremost, the law…… [Read More]
Brock and Dobbelaere (2003) demonstrate that wage price competition from overseas reduces wages in the developed world, even when jobs are maintained.
However, international trade based on comparative advantage should also create opportunities and indeed it does. The reallocation of resources to improve efficiency means that less manual labor is conducted in the est because on a comparative basis estern nations perform better at innovation, and at knowledge-intensive businesses in general. This is because we have better access to education and to information, and our cultures are more attuned to innovation and entrepreneurship than perhaps is the case in other parts of the world. International trade means that our knowledge can be used to earn money all over the world, whereas for most of the 20th century it was likely that most firms in the est earned most of their money in the est. Today one video game impresario can…… [Read More]
List four key points from the reading assignments that were emphasized in this simulation.
The production possibilities curve shows the trade-offs between producing items by indicating the opportunity cost of increasing one item's production in lieu of another item. Equilibrium is the point at which the economy is most efficiently allocating its resources.
Consumer surplus is the difference between the number of products and the amount of consumers willing to buy it. Trade increases consumer surplus. The gain is the difference between the price they are willing to pay and the actual price.
Producer surplus is the difference between what a supplier is paid for a good or service and what it costs to supply the good or service. A producer surplus exists when actual price exceeds the minimum price sellers will accept.
The deadweight economic loss from an economically inefficient situation equals the consumer and producer surplus that people…… [Read More]
S. To the Europeans, it provides several advantages for the Americans. On one hand, they would have an additional instrument of negotiations that they can use. The commercial talks about the trade agreement are likely to be very complicated and the Americans could obtain important concessions in areas ranging from agriculture to the film industry.
On the other hand, it would allow the U.S. To access a huge and very profitable market, capable of absorbing important exports of energy from U.S. producers. This would come at the right time, since the U.S. is expected to be self-sufficient in terms of energy production and consumption and producers would need to turn to foreign markets such as the European one.
Taiwan's protesters are fighting for the very democracy of the island
This is a very interesting article that looks at some of the negative results of a free trade agreement signed between…… [Read More]
In this instance then, the label 'Made in America' is a sign of national trust and high quality. Acme Motors is able to benefit from this as well.
But since producing automobile internally is so beneficial for Acme, the question remains why they, in the first place, moved engine manufacturing from Detroit to Mexico. The answer is the most simplistic one: cost reduction. The Detroit area is highly specialized and as a result, highly costly. Even with the transportation costs incurred, the expenditures are still reduced in comparison to those that would be incurred from producing all engines internally. Moving the manufacturing plant to Mexico did not imply loses in engine quality, moreover when the Mexican labor force is used to outsourcing operations and is becoming increasingly specialized in various fields.
The effects of such international operations are felt by all company stakeholders, including its customers. They are sometimes content…… [Read More]
There were many factors quoted for the reasons for this type of incompatibility, and they were the following: Article 2 of the Brussels Convention is in fact mandatory, and it can only be derogated from in the numerous ways and means that have been expressly provided for in the Convention.
Similarly, there was no provision for the forum non-conveniens in Article 2 of the Convention, and this was despite the fact that the Doctrine was discussed at the time when Denmark, Ireland and the United Kingdom acceded. Another factor stated was that legal certainty would never be fully guaranteed if there was such an incompatibility between the Brussels Convention and the forum non-conveniens doctrine, and furthermore, the very predictable nature of the rules of jurisdiction would become severely undermined. In addition, when a defendant has to come before the courts for any reason whatsoever, it would be infinitely better for…… [Read More]
International Trade and Emerging Economies
The rise of globalization and international trade has enabled emerging economies to become more integrated into the global trade mechanism. Countries such as India, China, and nations in Eastern Europe have benefited from the expansion of trade, importing and exporting goods to other countries that were never before accessible to the extent that they are today. The result has been a boost to the economies of these emerging nations. Indeed, all eyes are on India, which is “among the largest of the emerging markets” (Trichet, 2007, para. 3), and China (which is seeking to become a more dominant player in international affairs through investment, construction, integration and partnership). This paper will discuss the impact on international trade of emerging economies like those in Eastern Europe, India and China.
Eastern Europe sits between Russia and the West: it has struggled for many years to define itself…… [Read More]
International Trade: Pros and Cons
In our globally interconnected world in which it seems that every possible pairing of trading partners is occurring at all times, the idea that international trade is anything but the best system for supporting the global economy can seem quaint if not absolutely absurd. But simply because the world now exists as an increasingly integrated market in which fewer and fewer tariffs or sanctions have significant power does not mean that it is not significant to examine on a continuous basis the advantages and disadvantages of international trade.
Of course, there is no single assessment as to whether international trade is advantageous or disadvantageous because international trade affects different nations (and even different regions within the same nations) differentially. For the purposes of this paper, I shall focus on the effects of international trade on the United States as representative of the ways in which…… [Read More]
The same effect can occur for import industry. The prices of imported goods and commodities depend on how much the export market sells the commodities.
Applying the Situations in International Trade
As an administrative assistant, it is important to watch the international trading and market to gather enough information as to when it is ideal to invest or buy office goods and commodities for the company. An administrative assistant who has the responsibility to maintain proper conditions in an office environment always involves himself in buying of products for his company's use. Thus, applying knowledge in the current situations in international trade can benefit the company in terms of financial resources.
Trade Advantages and Disadvantages
etrieved on September 13, 2005, from Online. http://floti.bell.ac.uk/intee/Comparative%20advantage/tsld010.htm
The World Trade Organization (WTO). Advantages and Disadvantages.
etrieved on September 13, 2005, from Online. http://www.yementimes.com/article.shtml?i=875&p=opinion&a=2… [Read More]
Thus, free trade keeps costs lower for consumers and leads to more efficient production. However, there are exceptions to unabated free trade. Most notably, national security dictates restrictions on the sale of military goods to unfriendly countries. Also, one needs to consider appropriate responses to other countries who do not engage in fair trading policies. Recently, the U.S. has seen huge losses of jobs and a redistribution of wealth to Asian countries such as China and India. Perhaps some form of protectionism might be useful to give time for the U.S. time to make plans to deal with the situation.
Comparative advantage and absolute advantage. EconomicsInteractive.com. Retrieved at http://www.unc.edu/depts/econ/byrns_web/Economicae/Essays/AS_Comp_Adv.htm
Wallenius, H. International economics. http://www.tuta.hut.fi/studies/Courses_and_schedules/Isib/TU-91.2011/lecturenotes/Lecture_4.ppt#256,1,3INTERNATIONAL TRADE POLICY… [Read More]
The primary advantage of trade, he argued, was that it opened up new markets for surplus goods and also provided some commodities at less cost from abroad than at home.
Mass perception of free trade in the United States is rarely positive. Immediately, people think of lost jobs and our growing trade deficit instead of the free trade promises of a higher standard of living brought about by the theory of comparative advantage and economies of scale. Therefore, many feel that free trade makes this country worse off.
Adam Smith (1723-90)." The Concise Encyclopedia of Economics. Available:
http://www.econlib.org/library/Enc/bios/Smith.html (Accessed 19 Feb. 2005).
David Hume (1711-76)." The Concise Encyclopedia of Economics. Available: http://www.econlib.org/library/Enc/bios/Hume.html (Accessed 19 Feb. 2005).
http://en.wikipedia.org/wiki/Mercantilist (Accessed 19 Feb. 2005)
David Hume (1711-76)." The Concise Encyclopedia of Economics. Available: http://www.econlib.org/library/Enc/bios/Hume.html (Accessed 19 Feb. 2005).
Adam Smith (1723-90)." The Concise Encyclopedia of Economics. Available:
http://www.econlib.org/library/Enc/bios/Smith.html (Accessed 19…… [Read More]
Managing Offshoring Software Projects From U.S.-based Locations
In the article and research cited in An Empirical Investigation of Client Managers esponsibilities on Managing Offshore Outsourcing of Software-Testing Projects (Jain, Poston, Simon, 2011) the dynamics of outsourcing alliances with American companies and Indian service providers' shows signs of becoming more efficient through the use of collaboration technologies and more effective quality management techniques. The cultural, ethical and financial implications of Indian outsourcers becoming more efficient in working with American companies are having a risk reduction effect in the short-term and an acceleration of innovation in the long-term (Zhao, Watanabe, 2010). From a social perspective, Indian outsourcers are finding strategies for attaining a higher level of customer satisfaction level not attainable in previous iterations of their business models (Bairi, Manohar, 2011).
The cumulative effect of ethical, cultural and financial factors on the operations of Indian outsourcers throughout the United…… [Read More]
Knowing that international trade is by definition a national-level issue does not stop people from pointing out its flaws. Protectionism arises from individual or national interest, or to protect infant industries. Each of these must be recognized, however, as a distortion in the trade system, a negative action undertaken to achieve a non-economic goal (Friedman & Friedman, 1997).
In the case of many countries, the benefits of international trade are negligible not because the money does not come into the country, but because the money is siphoned out of the economy before it can do any good. Corruption and other inefficiencies in a market can negate some of the benefits of international trade, before the citizens of the country see the benefit. In order that citizens see benefit, they must have low taxation rates, receive public goods from their governments, or receive jobs from their companies. In short, trade will…… [Read More]
The orld Hunger organization (www.worldhunger.org) assertsthat there is a bias in international trade rules that favor developed nations. hy? Developed nations control the orld Trade Organization, according to the orld Hunger organization; and as to export items like pharmaceuticals, developed countries have shown "reluctance" to allow developing countries "to produce or import low cost generic drugs for major illnesses, such as AIDS" (www.worldhunger.org).
Another example of this alleged unfairness can be viewed in light of the U.S. Sugar Tariffs and Brazil. In the ashington Post (Jeter, 2003) it is explained that though the U.S. extols the greatness of free trade, it does not always live up to that rhetoric. The U.S. imposes a tariff of 244% on sugar imports "...above a small quote of duty free sugar imports" (Jeter, 2003). "hile Brazil has both plentiful and fertile land and available workers, the 244% tariff that the U.S. Government levies on…… [Read More]
Only a few decades ago, China was a struggling economy. It is much newer in the free market economy system as compared to the already established economical giants, given the country's communist history. China, a country with an extremely high population, put its resources to its best possible advantage and that was something which contributed towards the country's rapid growth. China has one of the cheapest labor and energy and power resources available for its production. As a result, the industries can achieve economies of scale and thus can cut down on their cost of production. As a result, China enjoys a greater absolute advantage over its competitors. Importers around the world have realized the fact that importing goods from China is relatively much cheaper as compared to imports from other developed economies. These cheaper imports allow them a greater profit margin. Moreover, given the fragile economic conditions and declining…… [Read More]
Given the high degree to which AIDS impedes global economic integration, in particular of sub-Saharan Africa, it would be reasonable to think that such a transnational issue would bring nations and institutions together to a much higher degree than we see.
Overall, the various aspects of the international system have enabled the expansion of global economic integration. Regimes, institutions, and regional interests bring nations together to meet common objectives. As rational actors, nations sometimes impede global integration, be it over a domestic issue or a transnational one. No aspect of the current international system, however, specifically impedes global economic integration. Only when a nation takes itself out of the international system, as has occurred in North Korea, Cuba, Zimbabwe and a handful of other countries, does economic integration become fully impeded. Therefore we can reasonably conclude that the international system, on balance and with a modicum of cooperation on the…… [Read More]
In the case of United States, Article 9 of the Uniform Commercial Code provides for practically all types of security agreements for owned property that are both for own use as also for commercial purposes. This type of agreements includes fixtures which mean personal property that is attached to the property, and the ready example can be a water heater. This does not include other liens taken on the property like the lien of a mechanic are not covered by this act, but are covered by the individual laws that govern them. There is also a statute of frauds and that requires a security agreement to be in writing for it to be valid, unless the property has been pledged for getting the loan. This sort of a pledge takes place when the borrowing party shifts the collateral to the lender of money in exchange for the loan that he…… [Read More]
Mercantilism as a philosophy may be dead, but special interests that lead to trade controls are alive and well (Mercantilism today: how a dead philosophy comes back to life, 2003). Trade controls that affect price and indirectly quantity include tariffs, subsidies, arbitrary customs-valuation and special fees (Daniels, Radebaugh, and Sullivan, 2007). Trade controls that directly affect quantity and indirectly affect price include quotas, voluntary export restrictions, "buy local" legislation, arbitrary standards, licensing arrangements, foreign-exchange controls, administrative delays and requirements to take goods in exchange for selling (Daniels, Radebaugh, and Sullivan, 2007).
Finally, businesses must also consider trade organizations and regional economic integration when deciding where to conduct business. The World Trade Organization promotes trade liberalization and mediates trade disputes and enforcing agreements (Daniels, Radebaugh, and Sullivan, 2007). Major regional trading groups include the European Union, the North American Free Trade Agreement, the Central American Common Market, the Caribbean Community and…… [Read More]
Thirdly, an advantage of the TO treaty is that it protects individual privacy when it comes to the "processing and dissemination of personal data and the protection of confidentiality of individual records and accounts" (www.wto.org). That issue came up because consumer advocate Ralph Nader was quoted as saying, "Particularly in the area of Internet privacy protections, the TO is forcing governments to forego sovereign privacy protections deemed to be overly restrictive to international trade" (www.wto.org). The TO's answer to that the trade deal signed by 123 nations "has had nothing whatever to do with internet privacy" and indeed a safeguard is built into the General Exceptions in Article XIV regarding processing and dissemination of personal data, as mentioned at the top of this paragraph.
The fourth advantage of international trade under the auspices of the TO is that deals signed cannot force any country to move towards the privatization…… [Read More]
"Policy issues attract a substantial attention from both economists and policymakers in the recent years" (Obsteldt). ith such attention being focused on the policy issues, it makes more than a little sense, to focus the attention there as well in order to have a higher likelihood of success than without the same attention. In order to focus attention on those policy issues it must be understood what those policy issues entail.
Those issues can include such items as exchange rates, currency crises and other financial events taking place in either country. The MIT study stated other components should also be addressed. "These include theory and evidence of exchange rate-based stabilizations....sovereign debt management and reform of the international financial system" (Obsteldt). Since there is currently no major problems between the two countries, both countries participate in the orld Monetary Fund as active members, and neither country is mismanage their debt management,…… [Read More]
S. inflation in check, even during economic boom times.
The debate about increasing protectionism in the U.S. boils down to a clash of cultural values. In the natural course of international trade, there will be those who suffer and those who benefit. International markets are amoral. Trade is conducted between nations with the intent of raising the standard of living for both, but this is on aggregate, not universally. As a result, jobs losses in some sectors, particularly those where the U.S. does not have comparative advantage, are inevitable. To enact protectionist measures to stem those job losses will have three negative impacts.
The first is retaliatory trade measures. Tariffs and other protectionist measures tend to go hand in hand. If a country protects its industries, nations that trade with that country will do the same. This is the classic Smoot-Hawley scenario. To protect American jobs during the…… [Read More]
International Trade: Trends in International Trade and the Economy
In recent years many developments are occurring within the world of international trade. These developments are vital to ones understanding of world economy and trade. As technology continues to advance the rate at which corporations can communicate across distant localities, more and more organizations are finding new ways to not only communicate but also trade products and services.
This paper will focus on recent trends and patterns in trade and their effects on the economy. The paper will also examine the potential benefits international trade has to offer participating nations compared with any negative effects free trade may have on the economy or citizens of a particularly nation. One of the more recent developments in international trade is recognition by economists of the importance of understanding industrial organizations from a theoretical perspective (Grimwade, 2000). Hence this paper will also attempt to…… [Read More]
The Uruguay round would designate that the TO, through its primary role as a mediator, negotiator, and monitor of international trade policies and disputes, serves by design as a gatekeeper of international trade, offering the structural conditions and assembled authority to exact a legitimate level of authority over its member nations.
A good example of how the TO has strengthened the international governing community's ability to provide oversights for its member nations comes from the 1994 rounds of negotiation in Uruguay which essentially defined and forged the TO from the shadows of the GATT. In a consideration, for instance, of the newly afforded power to engage in the process of dispute settlement, we can see that the TO would have an expansive impact on the power of those who had already acted under the propositions of the GATT. The declaration produced by this round of talks would proceed by stating…… [Read More]
185). Components for these products may be manufactured and put together in branches in various countries throughout the world. Thailand, Malaysia, Singapore, and Hong Kong were involved in the earliest types of production sharing, which included assembling electronic components manufactured in other countries. Production sharing, one World Bank study determined, currently contributes to approximately 30% of manufacturers' total global trade. Foreign affiliates' international exports approach over 7% of global GDP, approximately $2 trillion.
The World Trade Organization (WTO), which came into being in 1995, the only worldwide international organization that deals with rules of trade between countries, maintains their goal to be to assist producers and manufacturers of services; goods; exporters; importers in carry out business. ("What..., 2006, para. 1) "One of the youngest of the international organizations, the WTO is the successor to the General Agreement on Tariffs and Trade (GATT) established in the wake of the Second…… [Read More]
International Trade: Discussion of International etailing
GAP Inc.'s International Growth Strategy
GAP Inc. is one of the world's leading retailers in children, women, men's clothing and care products under the Intermix, Athleta, Piperlime, Old Navy, Banana epublic, and GAP brands. It currently operates over 3,000 stores scattered across 90 countries. GAP Inc. has increased its international presence through three key strategies -- brand extensions, acquisition of smaller companies, and building of physical stores/increasing the number of franchise-operated stores in promising markets.
In 2013, GAP Inc. boosted its presence in North America, particularly Mexico and Canada, through its $130 million acquisition of New-York-based firm, Intermix, a retailer in women's accessories, clothing and apparel (Gap Inc., 2013). With this acquisition, GAP Inc. added 32 boutiques scattered across the U.S., Canada, and Mexico, together with an e-commerce site for luxury brands and an additional brand to its portfolio. This followed an earlier acquisition…… [Read More]
"Dell recently established customer and technical support centers in India, China, Morocco, Panama, and Slovakia and has set up design centers in Taiwan and China. Furthermore, it not only has manufacturing facilities in Texas and Tennessee, but also in Brazil, Ireland, Malaysia, and China" (Pruitt, 2012).
Eeven though Dell has come under fire along with other companies by critics who say that offshoring is robbing U.S. citizens of jobs, the company's new chief executive officer has said that Dell will carry on to engage in the practice. The company's current chief operating officer has said that the issue of offshoring in regards to Dell has been overblown. Dell has said that it will persist to employ people overseas, where it sees market growth. The company derived almost forty percent of its revenue from international sales for its fiscal year 2004. In addition, it says that its potential growth is dependent…… [Read More]
" (U.S. Secuities and Exchange Commission Annual Repot No. 1-2217)
Economical and Political Influences:
Economical and political conditions in the intenational maket place include: "civil unest, poduct boycotts, govenmental changes and estiction on the ability to tansfe capital acoss bodes." It is vey possible that the cuent instability in economic and political conditions in the Middle East, Noth Koea, Iaq o elsewhee as well as continued teoism could advesely impact the Company's financial esults in business."
Othe factos include: "Changes in the nonalcoholic beveages business envionment which is inclusive of changes in consumes pefeences due to health o nutition aspects, competition pessues in poduct and picing competitive poduct. Othe changes such as changes in foeign cuency fluctuation and inteest ates as well as othe capital maket conditions, weathe conditions advesely effecting the Company by a eduction in demand, vaiations in effectiveness of advetising, maketing and pomotions. Fluctuations on cost and…… [Read More]
S. markets are listed as being:
Also is concern in the presence of the government in the telecommunications market sector. U.S. exporters need to know that shipping of foods and agricultural products must be done to meet Italian requirements whether sealed and bonded or not. Italy has also banned the commercialization of four corn varieties approved by the EU. The biotech corn ban may be in violation of EU regulations. The United States and the European Union are the two regions with the largest amounts of imports in Textile and Clothing as well as in terms of their GDP and power of purchase. There are also investment barriers in place making it a lengthy process and investors are prohibited from the airlines and aircraft manufacturing markets. Government procurement is also a problem as it is fragmented in Italy and there are problems with Conclusion:
There are…… [Read More]
International Trade Transaction used by MNEs in Global Business
International Trade Transaction
In the Global business environment, a typical trade transaction is either initiated by a seller who wishes to export his goods to the potential buyers in the international markets or by a buyer who is in a need for some specific goods that are not available in his country or it is more feasible for him to purchase them from international sellers. An international trade transaction is quite similar to a general local trade transaction with certain additional steps and precautions. These steps and precautionary measures make the international trade transaction far more complex than a local transaction (Hinkelman & Ebrary 140).
Participants in an International Trade Transaction:
Generally, there are four major participants in an international trade transaction; the seller (beneficiary or exporter of goods), buyer (importer of goods), issuing bank, and advising bank. Every international trade…… [Read More]
Reflection Paper – International Trade
There has been a lot of talk lately about NAFTA being put at risk – either the US wanting to pull out of the deal or to significantly re-negotiate its terms. Industries that either benefit from NAFTA or feel that they do not benefit are lining up to express their positions – the latest being the auto industry, which has generally benefited significantly from NAFTA's country of origin rules
This discussion makes one reflect on the objectives of trade policy in general. The entire point of trade policy is to expand the economy by leveraging comparative advantages. While there are high profile instances where Mexico has comparative advantage, and has therefore won some trade away from the United States, the US has the most number of products in which it has a comparative advantage, with Mexico the least (Mzumara, Chingarande & Karambakuwa, 2012).…… [Read More]
International Trade. There are two references used for this paper.
The United States currently maintains a moderate trade relationship with China. It is important to look at potential positive and negative effects of increased trade, and what the current state of uncertain long-term relations with the Chinese government could have on United States firms and the United States economy.
Inflation in China
China exports have had a major impact on keeping the price of goods down throughout the world for the past decade. However, as noted on the "opening day of China's biggest trade fair, the common refrain was that prices of everything from rice to steel were rising sharply, and that prices for exports to the United States, Europe and other markets would have to follow (Bradsher, 2004)."
The increase in steel prices is already having a negative effect on some United States businesses as evidenced when "an exporter…… [Read More]
regional international institutions, International Monetary Fund, World Bank, United Nations, World Trade Organization, a financial institution. Select countries apply traditional international trade theories, absolute advantage, comparative advantage, factor endowment, enhance participation international trade.
International Trade Participation
The interaction between countries is a complex process that is strongly influenced by economic, political, and cultural factors. The need for this interaction is based on the resources that can be provided with smaller efforts by some countries to countries that need them. The need for resources has determined countries to involve in military, economic, and biological wars, or to involve in influence relationships where several countries support a larger community that can polarize greater power in the attempt to counteract the influence of other powerful countries. This is the case of the European Union that was developed in order to join the efforts of European countries so that they could balance the power…… [Read More]
Trade Agreements and Negotiations on International Trade
Trade is important to countries all around the world. International trade opens up job opportunities and also leads to development of economic activity in every region of the trading country. The trading countries must also ensure that traders, whether self-employed entrepreneur, corporate executive or pensioner must bear the responsibility of making sure that goods and services are transported efficiently to global markets. The best way to advance in international trade is to work on two aspects namely, the Trade Commissioner Service, and also foster productive ways of negotiating and administering trade agreements and rules.
International Trade is defined as follows:
The law relating to the exchange of goods and services between nations. Legal issues can relate to tariffs and government restrictions on export and import, as well as the contracts between the trading partners." [LawyerLocator - Glossary of Terms]
The "old"…… [Read More]
In the real world, most markets are far from fully competitive, labor-productivity within a country varies over time and full employment is just a dream in most capitalist economies. (Suranovic 1997)
Given the list of such 'unrealistic' assumptions made in the model, it is easy for us to dismiss the results of comparative advantage altogether or to accept it with a large dose of skepticism. But would such dismissal be justified? It is prudent to remember that almost all economic theories operate under a large number of 'unrealistic' assumptions that do not apply to the much more complex real world. In fact, we deliberately simplify the variables in economics in order to be able to construct models and to carry out analysis. Such simplification does not make all economic analysis redundant. It should also be remembered that comparative advantage and international trade would work to the benefit of all individuals…… [Read More]
international trade the theories of absolute and comparative advantage are important. The concept of absolute advantage is seen in the trade theories of Adam Smith, originally published in 1776, where it was argued that countries should produce the goods that they can create with the lowest total costs (Smith, 1994). A country has an absolute advantage if they are able to produce a good at the lowest overall cost compared to other nations. In this model nations should export goods they produce at the lowest cost and import those goods that have the highest overall cost to produce (the absolute disadvantage) (Smith, 1994). In this way nations use their resources to optimize production. The concept of absolute advantage is a good starting point to assess who trade takes place in the international environment, but it is also too simplistic. Trade is more complex, with many countries producing goods which do…… [Read More]
Ever since Adam Smith demonstrated in The Wealth of Nations (1776) that individuals would be better off if they specialize, instead of trying to be economically self-sufficient, countries across the world have tried to apply the same principle to international trade. It is argued that all countries would be better off if they exchange the products and services that they are relatively good at producing for those things that other countries are relatively better at producing. David icardo (1772-1823), British economist and businessman, through his theory of Comparative Advantage went on to "prove" that it can be beneficial for two countries to trade, even if one of them is able to produce each item more cheaply than the other.
The colonialist powers, particularly Britain, had realized the benefits of international trade after its industrial revolution although it is highly debatable whether such trade was beneficial for the colonies…… [Read More]
negotiation, signing the contract and the actual operations of import that follow. Below is a rough plan of the report:
Commercial letters. Offer Demand.
Characteristics of Thai culture. Negotiation in an intercultural context
Signing the contract
Example of the contract
Transport and Freight
Payment. Letter of Credit
Customs and Custom Duties
The first thing that the importer will be concerned with is identifying the Thai market and possible partners. This kind of information is usually delivered by mixed (bilateral) chambers of trade. As of my knowledge, a bilateral Canadian- Thai chamber of trade does not exist as such, so that information on producers and exporters of tins from Thailand will most likely be gathered either from the International Chamber of Trade in Paris or from local sources.
Once the Thai exporters have been identified, the Canadian importer can proceed to send each of them an…… [Read More]
MEAs and the TO
"the Relationship between the Dispute-Settlement Mechanisms of MEAs and those of the TO."
As awareness of the importance of the environment has become more widespread, nations have entered into agreements which are intended to protect and maintain the world's environment. These Multilateral Environmental Agreements, or MEAs, are international agreements in which a number of nations agree to certain environmental protections. Examples include agreements like the 1946 International Convention for the Regulation of haling, or the 1973 Convention on International Trade in Endangered Species (CITES). These MEA's sometimes involve international trade, and thus overlaps occurs between the MEA's and the organization designed to enforce international trade agreements, the TO. hile many MEA's have their own dispute resolution mechanisms, or the means by which member nations resolve disagreements over the MEA, there sometimes also exists an overlap between the dispute resolution mechanisms of the individual MEA and the…… [Read More]
Intra-Industry International Trade
Standard trade theory and its deviations
The classical theory of international trade can be traced back to the founding father of capitalism Adam Smith: Smith's 1776 Wealth of Nations theorized that free trade would be beneficial to all nations. Smith stated that much like merchants, nations should specialize in the particular goods and services which they could produce most efficiently and trade with other nations who could produce alternate goods and services equally efficiently. Thus free trade resulted in advantages for both trading parties. Smith's theory was later fleshed out by David icardo in his Principles of Economics. iccardo stated that free trade could optimize efficiency for every country on a global level by reducing the inefficiencies generated by the excess resources involved in producing the goods and services the nation was not suited to produce (Sen 2010: 2).
This common wisdom remained relatively consistent…… [Read More]
Intenational Tade Between Bahain and Saudi Aabia
This is a pape on Tade between Bahain and Saudi Aabia, focusing on how it affects thei intenational tade elations with special attention to OPEC, GCC and the Qata dispute. It uses 22 souces in MLA fomat.
Both Saudi Aabia and Bahain ae membes of the Gulf Coopeation Council along with Qata, UAE, Kuwait and Oman. Unde the GCC Ageement, pefeential taiffs apply among the membe states. Since independence in 1971, Bahain has essentially pusued a libeal tade and investment policy, and has integated its economy closely with those of othe counties in the egion, though the Unified Economic Ageement of the Gulf Coopeation Council (GCC).
Tade and economic gowth in Bahain is stongly affected by vaiations in intenational enegy pices. Real GDP gowth, as a esult, was slowe duing the 1990s compaed with the pevious decade, aveaging aound 3.6% annually since 1994.…… [Read More]
Intra-Industry International Trade: Benefits and Costs
Trade is brought about by specialization. People specialize in those goods and services that they can produce effectively, and since they cannot survive on only these, exchange their surplus production for other items that they need, but do not produce. There are mainly two types of trade in this regard; international and domestic. The domestic form of trade refers to the exchange of trade items (services and goods) within a country's borders. International trade, on the other hand, can be defined as "the exchange of goods and services among residents of different countries" (Chacholiades, 2006). International trade can take either of two forms; intra-industry or inter-industry forms of trade. Inter-industry trade is trade between industries, whereas intra-industry trade takes place within industries. Intra-industry trade, therefore, refers to the importation and exportation of same-industry items of trade (Gandolfo, 1998).
International trade has been on…… [Read More]
intra-industry international trade within the standard international trade classification SITC6, which represents manufactured foods classified chiefly by material. The scope of this paper is limited to processed foods, and includes analytical frameworks from the gravity model, and classic approaches to product differentiation, product commoditization, pricing, and market structure.
eferences to market structures in the literature typically oversimplify the dynamics influencing the development of market types -- perfect competition, monopolistic competition, oligopoly, and monopoly -- and this tendency is exacerbated when the focus is on intra-industry trade. Further, the distinctions become considerably more obfuscated when companies that are in the same trade do business in both domestic and international markets. A global manufacturing strategy is the goal of most multinational companies, and rationalizing manufacturing strategies is an objective for nations, as well (Lee, 1984). For instance, assume that a country has the industrial infrastructure to produce canned beverages, but there are…… [Read More]
Economics of International Trade China
Exploring the Economics of International Trade: China
"Chinese international trade has experienced rapid expansion together with its dramatic economic growth which has made the country to target the world as its market," and its expansion has only continued to show powerful growth within the international economic marketplace (Sun & Heshmati, 2010, p 1). After China was reopened to trading with the West in 1978, the country has really took off in becoming one of the world's biggest producers and exporters of a plethora of different goods. China has grown tremendously as nations like the United States have become their biggest trading partners. In response, China has helped refuel this growth with the manipulation of their currency and their heavy investment in the U.S. dollar, which ensures them a more competitive position for their exports.
For generations, China had closed itself off to trading and interacting…… [Read More]