INTERNATIONAL TRADE

International trade

International trade coursework

Introduction

When 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 commercial, political or cultural has been reached, at world, a deep meaning to such an extent that one cannot speak only of goods but also exchange programs of integration . The global economy raises the study of the problems posed by international economic transactions, therefore when we talk about international economy is to link co factors of international trade.

Discussion

Four factors that may have contributed to decline in international trade

Data on the growth of trade show reductions of more than past downturns. Several factors may explain this situation.

The decline in demand is additional extensive than before, because all regions of the world economy are affected simultaneously by the slowdown (Sen R., Tisdell C., 2011, pp. 50).

A second reason that may explain the magnitude of recent declines is due to the growing presence of global supply chains in total trade. Contraction or expansion of trade is no longer just a question of changes in trade flows between a producing country and a consuming country - goods cross many frontiers during the production process, and components of the final product are reduced by each time they cross a border. The only way to avoid this effect - that the overall magnitude can only be assumed because of the lack of systematic information - would be to measure business transactions on the basis of the value added at each stage of the production process. Because the value added, or the return of production factors, is the real measure of income in the economy and that trade is a gross flow rather than a measure of income, it follows since reasoning that ash been mentioned above as large boost or cut in the numbers of trade flows not ought to be construed since the exact indicator of what is really happening in terms of income and employment (ites.uclouvain.be).

A 3rd element of conditions in current so as to probably contributes to the trade decline is the trade finance shortage. This is obviously a difficulty and international institutions and governments to pay special attention. The WTO plays a mediating role in bringing together the key players they are working to make trade finance accessible and affordable.

A last factor add to contraction in the trade is termed as protection. Any deviation in this factor can leads to intimidate the recovery prospects and expand the downturn duration. The threat of increasing protectionism is rightly a source of concern for the future (info.worldbank.org).

Forms of non-tariff barriers

Non-tariff barriers are all the other obstacles to the entry of foreign goods. This may be quantitative limits (quotas or quotas) on imports of particular products which set for maximum amount for a given period. It may also be barriers more insidious, less visible: it imposes specific health standards for imported products, or technical standards, can also ...