FREE TRADE AND INTERNATIONAL BUSINESS

Free Trade and International Business

Free Trade and International Business

Introduction

The importance of good performance of international relations in the development, political, commercial, cultural worldwide today is essential to achieve the integral development of nations. No single nation so that it can be considered self sufficient and does not need the assistance and support of other countries, even the richest nations 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 (Bhagwati, 2002, 50-62). In this work developing international trade: definition, causes, origins, benefits, agencies, funding etc international as well as major global agreements that govern international trade.

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 (Bhagwati, 2002, 50-62). 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 are 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

International Business and Trade

The origin is in the sharing of wealth or products of tropical countries for temperate-zone products or cold. As improvements were happening in the system of transport and the effects of industrialism were higher, international trade was increasing due to increased flows of capital and services in the most backward areas in its development. The first time that Central America told its interest in negotiating a Free Trade Agreement in 1992 (Federal Reserve Bank of Kansas City, 1992, 88-95). The region was concerned about the negative effects on trade and investment, could be agreed that the country was ending negotiations with Canada and Mexico at ...