Impact of Emerging Economies on International Trade

Abstract

This research is an attempt to reveal the impacts of Emerging Market Economies on International Trade. The descriptive analysis of impact of Emerging Market Economies particularly the Western Europe, China and India reveals that there is an extended growth and progress in the international trade and capital markets from the last years. It is also expected from the recent extensive growth that there is a strong positive effect on international trade of the Emerging Market Economies in the next 20-50 years.

Introduction1

Methodology1

From the Perspective of International Trade1

From the Perspective of Capital Markets and Foreign Direct Investment2

Analysis3

Conclusion3

References4

Impact of Emerging Economies on International Trade

Introduction

It is being observed that Emerging Market Economies (EMEs) have experienced rapid development in international trade and economic activity over the last few years (Xu. & Meyer, 2005). They have performed with a sharp pace comparatively from other countries in the world. This has been greatly the effects of an external oriented strategy maintained on a very strong development of trade within and outside the region among the emerging market economies (Pere, 2005). The economic down turn in Emerging market Economies proved to be temporary, and the growth ultimately continued strongly. Latin America economies appeared from the last decade of the 1980s, taking the advantage from the execution of sound structural reforms and macroeconomic policies (Sánchez, 2007).

Methodology

From the Perspective of International Trade

In terms of the nominal world exports of goods and services, the world trade has comparatively become more than three times from the US$ 2.3 trillion in the year of 1985 to over US$ 7.8 trillion in the year of 2002 (Pere, 2005). The major reason of this rise is a consequence of deregulation and liberalization among the developing countries. Developing countries and Emerging markets till the early 1990s, they were generally stayed to neo-mercantilist policies of trade as a means of producing rapid economic industrial progress and development and preventing the rapid crisis of balance of payment (Sánchez, 2007). However, the last decade has observed a growing liberalization through their tariff systems were about four times higher than the developed countries on an average level. Comparatively, the non-tariff barriers of the developing countries concealed a higher ratio even more than double the share of the import types of developed countries (Sánchez, 2007).

It is being observed that however, the last decade has observed a progressive liberalization of their tariff classifications through ...