POLICY ISSUES ON GLOBAL ECONOMY

Policy Issues on Global Economy

Policy Issues on Global Economy

Introduction

The importance of good performance of international relations in the development, political, business, cultural prevalent today is essential to achieve the integral development of nations. No single nation, that can be considered self sufficient and does not need assistance and support of other countries, even the richest nation's need resources which, they lack and that through negotiations and global agreements meet their needs and wants elsewhere. Climatic conditions of each nation to make exchange areas produce goods needed for survival and development of vital areas between nations. The development of trade makes countries international prosper by leveraging their assets grow best, and then exchange with other countries to see what they produce best. In this work, developing international trade: definition, causes, origins, benefits, agencies, funding etc international as well as major global agreements that govern international trade (Whaples, 2006).

In analyzing the economy, we must review the dimension that transcends the borders of a country, i.e., which addresses the problems international economic purposes. The importance of international relations in the sphere of trade, politics or culture, has reached a global level, a deeper meaning to such an extent that one cannot speak only of goods but also exchange programs of integration. The international economy poses to study the problems of international economic transactions, therefore, when we talk about international economy is to link co international trade factors.

International trade is the exchange of economic goods that takes place between the inhabitants of two or more nations, in such a way that gives rise to outflows of goods from one country (export) entries of goods (imports) from other countries. The data show that there is a statistical certainly between freer trade and economic growth. The theory says convincing economic reasons for the link. All countries, including the poorest, have assets-human, industrial, natural and financial, which can be used to produce goods and services for their markets to compete in domestic or foreign. Economics tells us that we can benefit when these goods and services can be traded. Put simply, the principle of "comparative advantage" says that countries prosper first by taking advantage of their assets to concentrate on what they can produce best, and then exchanging these products for products that other countries produce best.

Discussion and Analysis

Free Trade is an economic concept, concerning the sale of products between countries free of tariffs and any form of trade barriers. Free trade involves the removal of artificial barriers (government regulations) trade between individuals and companies from different countries. In a free trade treaty, signatory countries agree to cancel each other border tariffs, ie, the prices of all products trade between them will be the same for everyone in the area, so that a country cannot increase (through import tariffs) the price of goods produced in another country that is part of the FTA. International trade can be often restricted by various taxes national tariffs imposed on imported and exported goods and other non-monetary ...