Importance Of Trade In Globalization

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Introduction: The Importance of Going Global • For U.S. companies, 70% of total world market for goods and services is outside the country • Coca-Cola earns 75% of operating income and two-thirds of profit outside of North America • For Japanese companies, 90% of world market is outside the country • For German companies, 94% of their market potential lies outside Germany Part A: Political Arguments There is no doubt that in the international business environment free trade plays an important role in globalization. In other words, globalization refers to the application of free trade in an international scale through international business liberalization. Countries remove their trade barrier policy in order to implement trade…show more content…
Therefore, food products are checked by health officials in the custom posts. For example, Argentina has raised import tariffs on 100 food products, including powder of milk which were increased to 9% after the implementation of customer protection policy as well as increasing farmers income. • Retaliating to unfair foreign competition When governments take, or threaten to take, specific actions, other countries may remove trade barriers. To be more precise, trade with unfriendly governments must be regulated. If trade action is conducted between two unfriendly countries, trade should be regulated in terms of commodities and prices. • Protecting national culture and identity Preservation of national culture can be a reason for the regulating trade and protecting one’s national identity. Many countries try to protect their culture and identity from non-cultural and commercialization. For instance, in France the government imposes partial limit to the imported foreign films. It is mainly because of fear that those movies may negatively affect to the French tradition and…show more content…
As far as detainment the business sector, exporters offer great in outside nations, even at a lower cost than their expense structure spent. Such practices upset the exceptionally modern structure in the importing nations. So as to check this move of exporters, the legislature in the importing nation forces confinement on imports. In any case, it is extremely hard to demonstrate unreasonable exchange hones now and again. In addition, retaliatory measures frequently swing to be unending and they demonstrate hurtful for exchanging nations. As the outcome, this protectionism factor gives rise to unloading excess production. It impacts directly in order to lower price to drive out existing competitors and scare off potential entrants. For example to Anti-dumping argument, China tariffs on imports of stainless steel tubes from Japan and European Union, which differ from 9% to

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