Introductions International trade refers to a country trade goods and services to another country. International trade open up the world potential market to increase producer sales quantity and increase competition on foreign country. apart from these, international trade will create job opportunity and hence reduced unemployment rate as well as positive balance of payment. however, it might bring negative effects to a country as well, therefore, government play an important role in implementing trade restriction on imported goods in order to prevent imported goods destroy the domestic market or at certain extend, monopolize the market. 94 words A ) Discuss the forms of restriction on international trade.
(i)Economy The ever growing dependence between global economies resulting from international trade of goods, services, finances and technological development paved the way for a global economy. Economic globalisation refers to the continual growth and reciprocated integration of world markets and is an unalterable trend which has been developing at an unprecedented rate since the turn of the twentieth century. Rapid technological development, particularly in areas of information and communication, are the two main forces that have fuelled economic globalisation (Gao). Further the expansion of science and technology has substantially reduced the cost of transportation and communication, making economic globalisation a smoother process (Gao). Centralised economies shifted focus to market economies and market oriented reform through world bodies like GATT, WTO, IMF and World Bank galvanised this process.
International trade displays an important role in the economy in every state. It can help developing countries increase current supply and demand. International trade means exchanging goods and services across national borders by transportations. Each country can use limited resources to produce a set of limit products and services to citizens, in this case international trade can import what domestic are lack of and export what domestic are excessive. International trade gives companies an opportunity to open new markets in global and provide a better goods and services choice for people (Wild el al, 2008).
However, immigration should be encouraged because there are obvious benefits to the economy of the host country in terms of state revenue, labor market, and country development. Immigration helps the host country to develop revenue by increasing the gross domestic product (GDP), and through taxes because immigrants
After the Second World War, economic factors became more and more important in the world. Both developed and developing countries want to improve their economic development rapidly. After, the developed countries increase economy successfully by free trade; the developing countries started to follow their steps. From that time, global economy began to burgeon. Economic globalization provides many chance
And also, as a result of international trade, the market contains greater competition with more competitive price and cheaper products. This essay will focus on the definition, advantages and consequences of international trade with considerable theories and evidence. First point I want to emphasize is that international trade is the exchange of goods and services between countries. This is the type of world economy and trade, prices, supply and demand, impact which influences world events. Political change in Asia is inclined to lead to increase labor costs, thus increase the production costs of sneaker companies.
For example, MNC provides as a major source of capital and technology for economic development within a country. Continuing restructuring of manufacturing and services is very important in the nature of world economy. MNCs play a significant role in transfer of technology between the countries. There is an increased importance of regionalization in world economy. MNCs of major economic powers continue to invest in one another’s economies as a strategy.
The primary attention of the theory has centered on ways wherein pre-contemporary, modern and put up- current societies thru methods of financial growth and trade in social, political, and cultural systems. Modernization idea claimed that Western capitalist values and practices are the premise for “modernizing” third global countries and supporting them come to be self-maintaining, though but, continents like Latin the united states have proven that following the modernization theory simplest widened the space among first and 0.33 international international locations, causing the 0.33 global countries to depend even greater upon the first international international locations for his or her survival. The developed international locations would make massive profits on the manufactured items made out of the uncooked substances consisting of gold and diamonds, whilst the developing international locations might make very low profits on materials exported. Capitalist societies attempted to modernize the 1/3 world countries through making them abandon their traditional ideals and latch directly to the brand new industrial, capitalist view; they did not don't forget the historic context in their development and wishes of that unique
Export is a function of international trade in which the goods produced in a country will be sent to another country for future sale or trade. Therefore, by selling of such goods and services it will increase the producing nation gross output. Export also one of the oldest form of economic grow, and occur on a large scale between nations that have fewer restrictions on trade, such as tariffs or subsidies. Another process involve in international trade is import, import is a process good or services brought from another country to another. Together with exports, imports also are the backbone of international trade.
Liberalization of trade entails the removal of tariff and non-tariff barriers to imported goods (Lewis, 1996). Regulations that discriminate against foreign investment are also to be eliminated. It has become a standard refrain in policy circles that expanded trade holds the key to prosperity for developing countries. According to this school, if the industrialized countries would eliminate their trade barriers, especially in apparel and agriculture, this would provide a basis for growth in developing countries, pulling hundreds of millions of people out of poverty. For the monetarists, the ensuing free interplay of market forces was expected to eliminate waste, generate productive forces and foster efficiency and growth (Greenaway, 1998; Greenaway, Morgan, & Wright, 2002).