2.2.1. The Importance Of International Trade, Economic Integration And Global Markets To Uk Business Organisations

753 words - 4 pages

International trade is the exchange of goods and services between countries. The exchange includes import that the countries buy goods or services from other countries outside and export that the countries sell goods or services overseas. Trading of goods is available with clothes, food, stocks, wines, jewellery and many more products. Trading of services is also done like banking, consulting, tourism, or transportation. The international trade play an important role in the development of a country’s economy in general and in the development of an individual organisation in particular. Essentially, international trade help a country become richer because rather than the country tries to ...view middle of the document...

- It has a part in stabilizing seasonal market fluctuations.
- Organisations can exploit international trade technology to develop their own transactions.
- International competition will increase production efficiencies and will help to extend the size of organisations.
- Organisations will have chance to experience in cultural exchanges between nations.
Furthermore, economic integration has become a common trend in the development of economy. The degree of economic integration can be divided into six stages:
- Preferential trading area
- Free trade area
- Customs union
- Common market
- Economic and monetary union
- Complete economic integration
Economic integration has brought many benefits to the countries. The more integrated the economic become, the fewer trade barriers exist. The economic and political coordination is much better. The economy are integrated, the costs for both consumers and producers are reduced, as well as trade increases between the countries taking part in the agreement. Integration also has positive effect on innovation and growth by creating more competitions between these countries. The market becomes wider; therefore, it allows organisations to sell their product to more consumers with no limit. Preferential trade can contribute to replace domestic production by cheaper imports from other countries; therefore, it reduces inefficient local production and minimizes the inefficient use of resources. The removal of trade barriers is reduced and the tariffs can be removed entirely. Consequently, organisations can save a lot of money. Economic...

Other Essays Like 2.2.1. the Importance of International Trade, Economic Integration and Global Markets to Uk Business Organisations

Clearly Explain and Discuss the Theory of Comparative Advantage. Given the Economic Benefits of Trade (According to the Above Theory) Why Do Some Countries (Give Examples) Attempt to Restrict Trade?

925 words - 4 pages Clearly explain and discuss the theory of comparative advantage. Given the economic benefits of trade (according to the above theory) why do some countries (give examples) attempt to restrict trade? Throughout the following essay I am going to be explaining and discussing in detail the theory of Comparative Advantage. The theory of Comparative Advantage is one the most fundamental and unchallenged laws in economics with many benefits to the

Us Trade with European Countries International Business

2674 words - 11 pages would be the key principle in accelerating international economic recovery globally. The international business sector would see even greater benefits from this close trade agreement; the policy would boost competition and strengthen small businesses. “According to the 2013 Small Business Exporting Survey, these businesses account for 98 % of exporting firms and 33 % of exporting value in the U.S. Yet 69 % of these businesses struggle with

International Trade And Comparative Advantage In The U.S. And Mexico

804 words - 4 pages I have been asked to use my experience in Mexico to discuss International Trade and Comparative Advantage. I will be using the U.S. tobacco companies and tobacco farmers in developing countries as examples to my discussion. I will be addressing the following five questions.Explain why the U.S. would subsidize the short run costs of production for tobacco farmers in foreign countries and do these practices guarantee the tobacco farmers a profit

Import Controls and International Trade

637 words - 3 pages Developed Countries), as international trade should assist them into becoming more integrated in the world economy which should lead to successful domestic firms establishing contacts with the international capital markets. Furthermore, increasing levels of trade should lead to a foreign trade multiplier effect which should reduce both the levels of unemployment and poverty. All in all, it is fair to say that international trade is a highly

International Trade and Finance Speech

774 words - 4 pages inflation on gasoline prices, and price gouging due to the high demand and consumption of gasoline within this country. Since this type of product is imported into our country we don’t benefit from the sales exporting countries do. What are the effects of international trade to GDP, domestic markets and university students? United States is a huge contributor to the international trade as well as we rely heavily on products that are imported from

International Trade and Finance Paper

1053 words - 5 pages on the up side and looking at a growing economy. When there is a surplus of imports brought into the United States, there comes advantages and disadvantages to our economy. “The increased economic activity associated with every stage of the import process helps support millions of jobs in the U.S” (Scissors, Espinoza, & Miller, 2012). This happens by supplying jobs in all aspects of the business market from transportation, construction

Module: Logistics And International Trade

1189 words - 5 pages importance of integrating the logistics processes of all supply chain partners to better serve the needs of ultimate customers. Rodrigues et al. (2005, p. 1) identify logistics as “one of the largest costs involved in international trade.” Christopher (2005) argues that the concept of cost employed in logistical decisions is narrow and ignores other costs like, inventory cost and obsolesce risk cost. Therefore, good Logistics management can

Sources of International Trade Law

1944 words - 8 pages legally with international trade transactions? What alternative is most recommended for international trade law? When do relevant parts of the municipal law apply for the governance of disputes arising from international trade transactions? The alternatives and sources of international trade law It is common known that source of law means the origin from which rules of human conduct start to exist, deriving legal force or

Importance of Ethics to Business Success

844 words - 4 pages . Another example of a company that became very successful by reason of ethics it emphasized is Boeing. It was established in 1916 and it became very prominent in the business during the Second World War. It is the world’s largest producer of commercial aircraft. William Allen took the reins at the end of the Second World War. He faced a formidable challenge of transforming Boeing from a wartime producer to a peacetime manufacturer. He drew a list of

The Global Economic Restructuring

3801 words - 16 pages changes have affected political, economic and social developments. Acceleration is seen in vast technological changes, media revolution, global economic integration and massive changes in production systems and labour markets. All these rapid increases in transnational flow of capital, trade and technology have marked its effects on international migration as well. Global economic restructuring has led not only to disruption in less developed or

Cultural Differences in Doing Business Between the Netherlands and Uk

2159 words - 9 pages meetings are, while not very lengthy, quite often and inconclusive. That is because the result of a meeting in the UK usually ends with the decision that a new meeting should be held. A common complaint coming from British business is that their meetings are too long. Similarly to The Netherlands, in the UK, little to no preparation is done ahead of meetings in order to create a more productive decision making environment, as open to debate as

Related Papers

International Oil Markets And The Global Economy

1090 words - 5 pages International Oil Markets and the Global Economy Oil has a significant influence on international trade, economics and politics. Starting with the industrial revolution and the introduction of the internal-combustion engine, oil has been an essential factor in the economic expansion of the twentieth century. Its importance has become more pronounced with the spread of transportation and manufacturing

Introduction To International Business; Global Marketing

1133 words - 5 pages Module 1 - Case Introduction to International Business; Global Marketing November, 30, 2013   Olympic Games have made their innovative image in the field of sports. In 1896, it didn't have such popularity and proper strategy to earn monetary value. After a huge break, a new president Juan Antonio Samaranch appointed in 1980 and he was the first one, who created the financial independent for Olympic. In 1984, Sarajevo OCOG has signed

Regional Economic Integration And The Impact Of The Single European Market

2075 words - 9 pages Regional Economic Integration and the Impact of the Single European Market Regional Economic Integration is an agreement between countries to reduce or remove trade barriers so that counties within the agreement will benefit by joining the integration. Without this Regional Economic Integration it was difficult for countries to trade because exporting goods from one country to another always had tariffs and nontariff barriers, making it

Albanian Business Environment & International Market Integration Constrains

5543 words - 23 pages crisis), & domestic political crises created after 2009 elections, the economy figures in Albania started to slow. Country GDP for 2011 is 3.6% instead of 5% in 2010.(“Albanian Business Forecast Report Q4 2011”18.09.2011-Business Monitor International www.marketresearch.com). Placed and integrated poorly with other regional and global markets, the missing bursa system, somehow tends to protect the country economy by the rapid downwards change. This