This website uses cookies to ensure you have the best experience. Learn more

International Trade Essay

1283 words - 6 pages

INTERNATIONAL TRADE

SESSION 1 – INTRODUCTION

Trade is what happens between nations (which can be big, small or even city state just like singapore), it could also be sending labour forces or capital from a country to another (old fashion way)

The international integration of national economies have brought many benefits to nations accross the globe, including technologal innovation, less expensive products, and greater investment in regions where local capital is scare, to name a few. But it also made countries vulnerable to economic problems that have become more easily transmitted from one place to another.

ELEMENTS OF INTERNATIONAL ECONOMIC INTEGRATION

Most people ...view middle of the document...

Obliged to close their borders to foreign goods, capital and people. And since the end of WWII, many of the economic linkages bewteen nations have served to repair the damage done.

Economists usually point out three criteria/measures for judging the degree integration :
trade flows
capital flows
the similarity of prices in seperate markets

One measure of the importance of international trade in a nation's economy is the sum of exports plus imports, divided by the Gross Domestic Product, where GDP is a measure of total production (specifiaclly the value of all finals goods and services produced inside a nation during some period, usually one year).
The ratio of trade to GDP is called the INDEX OF OPENNESS

In general large countryies are less dependent on international trade because their firms can reach an optimal production size without having to see to foreign markets. Consequently smaller countries tend to have higer measures of openness.

The index of openness measures the relative importance of international trade in a nation's economy, but it does not provide any information about trade policy or trade barriers.

In addition to exports and imports, factor movements are also an indicator of economic integration. (when talking about factors of production : labour and capital)
As national economies become more interdependent, labor and capital should move easily across international boundaries.
Labor, however, is less mobile internationally than it was in 1900 (due to passport controls and work permits)
→ Consider, 1890, 14,5% of the US pop was foreign born, while in 2001 it represents 12,1%.

On the capital side, measurement is more difficult, since there are several way to measure capital flows. There is a basic disctinction bewteen :
financial capital=paper assets such as stocks, bonds, currencies and bank accounts
physical capital= real estate, factorues and businesses
The latter type of capital is called Foreign Direct Investment (FDI)
FDI are linked with the end of protectionism for some countries that's why they developed themselves in the 80's.
Indeed bewteen 1913-2003, there were several protectionism differences. In the early 1913 there started to be less of protectionism policies.
Instruments to trade policy : barriers to trade (tariffs), taxes on imports, quotas, limitations on imports.

Flow are much larger than the previous era of globalization but mainly because economies are larger.
Increasing in capital flows are due to :
many more financial instruments available
role of foreign exchange transactions (largest component of international capital movements)
costs of foreign financial transactions have fallen significantly
BUT can lead to speculative excesses and overinvestment which can lead to disastreous consequences.

THREE FEATURES OF CONTEMPORARY INTERNATIONAL ECONOMIC RELATIONS

Trade, as measured by the openness index, is about 50% more important...

Other Essays Like International Trade

International Trade Speech

1362 words - 6 pages International Trade Speech Jeffrey D. Randolph, Paul Etuk-Udoh, John Benson, Nathan Delguidice ECO 372 May 20, 2015 Elena Zee International Trade Speech Ladies and gentlemen of the press, welcome to the House of Representatives. Today I will discuss some of the more interesting aspects of the United States economy. Economics, of course, is a combination of theories, principles, and models that deal with the distribution of

International Trade Speech

1113 words - 5 pages International Trade Speech Good evening ladies and gentlemen: Today we will discuss the United States economy by addressing the effects of import surpluses and regulation, effects of international trade on GDP, domestic markets, and university students, tariffs, quotas, and foreign exchange rates. Imports may come from any country. Surplus of Imports When a surplus of imports is allowed to enter the U.S., the prices of those imports

International Trade Practice

1011 words - 5 pages MUST International Trade Practice (Fall 2011) Problem Set 3: Ch7 Terms of Payment MULTIPLE CHOICE ( Please write down on your answer sheet the correct answer and explain briefly). 1. Among other reasons, international transactions are perceived to have more risk of non-payment because of a. | a lack of credit information. | d. | All of the above | b. | a lack of personal contact. | e. | None of the above | c. | no easy

International Trade Economics

2058 words - 9 pages International Trade Economics Assignment 1 Question 1 a. Trade in services occur when there is no physical movement which is opposite to trade in goods. Based on case study of South African citizen visiting NZ, the modes of Trade in Services that would result from the transactions and activities of this individual are: mode1. Cross-border when South African citizen purchase a ticket online (IT services), mode2. Consumption abroad

Essay for International Trade

1432 words - 6 pages International trade terms Trade terms are abbreviated terms gradually formed in international trade practices, which express the seller’s and the buyer’s transaction costs, responsibility and risk under different conditions of delivery. The role of trade terms ---Price ---Risks of loss shifts from the seller to the buyer ---Costs of freight and insurance Role: Simplifying the process of negotiation of a contract, saving time and

International Trade Practice

1420 words - 6 pages International Rules for the Interpretation of Trade Terms,缩写形式为INCOTERMS,它是国际商会为了统一对各种贸易术语的解释而制定的。最早的《通则》产生于l 936年,后来为适应国际贸易业务发展的需要,国际商会先后进行过多次修改和补充。现行的《2000通则》是国际商会根据近10年来形势的变化和国际贸易发展的需要,在《1990年通则》的基础上修订产生的,并于2000年1月1日起生效。 国际商会推出《2000通则》时,在其引言中指出,进行国际贸易时,除了订立买卖合同外,还要涉及运输合同、保险合同、融资合同等。这些合同相互关联,互相影响,但《通则》只限于对货物买卖合同中交易双方权利义务的规定,而且该货物是有形的,不包括电脑软件之类的东西。作为买卖合同的卖方,其基本义务可概括为交货、交单和转移货物的所有权,而《通则》也仅仅涉及前两项内容,它不涉及所有权和其他产权的转移问题,也不涉及违约及其后果等问题。 与《90通则》对《80通则》的修改

International Trade — Part I — Why People Trade

1297 words - 6 pages on how wealth is created as specialization and division of labor facilitate trade based on comparative advantage. It also looks at what inhibits trade, from transaction costs to trade policy. Together, these basic tools prepare students to deal with the issues of international trade in Topic 14. Key Terms: voluntary exchange mutual benefit trade barriers specialization opportunity cost quota tariff division of labor comparative

Sources of International Trade Law

1944 words - 8 pages Introduction Many countries do not have a separate body of laws for dealing with international trade transactions. Nonetheless, this absence of a separate code or body of rules does not prevent those countries in dealing with international trade transactions. They can use alternative sources of international trade law to resolve their legal problems. This paper is going to analyse the principal sources of international trade law

Import Controls and International Trade

637 words - 3 pages Trading within the economy is an essential part in ensuring the growth of the economy and firms’ profit. International trade has been going on for years; however, over the recent years in particular, there has been a vast expansion on import controls, this is due to various reasons, these reasons are to help growing firms with their domestic status. Certain industries possess a potential comparative advantage but have not yet exploited the

Challenges for Canadian International Trade

2635 words - 11 pages CHALLENGES FOR CANADIAN INTERNATIONAL TRADE GROWTH WITH MULTILATERALISM TRADE March 4, 2011 Abstract This essay contains the international trade between Canada to U.S. and Canada to China including the foreign exchange policy in each country and comparative advantages. It mostly focused on U.S and China between Canada’s relationships. The United States and China are the largest economic market in the world. Also these countries are

Applying International Trade Concepts Paper

1429 words - 6 pages Applying International Trade Concepts Paper ECO/372: Macroeconomics April 4, 2010 Applying International Trade Concepts Paper In the University of Phoenix simulation, Applying International Trade Concepts, a situation is presented concerning international trade - “the theory of comparative advantage, the impact of tariffs, quotas, and dumping, and the rationale behind free trade agreements (FTA)” (University of Phoenix, 2010, p. 19

Related Papers

International Trade Essay

994 words - 4 pages 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. International trade help a country become richer because rather than the country tries to produce every

International Trade Essay

3259 words - 14 pages International Trade CONTENTS INTRODUCTION 3 HISTORY 4 IMPORTANCE OF TRADE 5 INTERDEPENDENCE 6 LAW OF COMPARATIVE ADVANTAGE 7 BENEFITS OF DIVERSITY 7 COMPETITIVENESS 8 ECONOMIES OF SCALE 9 FREE TRADE 10 PROTECTIONISM 10 METHODS OF PROTECTIONISM 11 MEASURES OF TRADE 12 Global Trade Risk: 14 Types of Risk, Ways to Manage 14 CONCLUSION 17 REFERENCES 18 INTRODUCTION International trade has a big influence in our day-to-day lives, even if we

International Trade Essay

3463 words - 14 pages . What is even more worrying for the future of the agricultural negotiation is that even the latest round of talks, countries are not showing any inclination towards reconciliation. According to reports published in the International Trade Daily, after a negotiating group session held during 2224th January 2003, Harbinson noted that the meeting was intended to "build bridges" between opposing camps and push the WTO talks forward as members head

Economics International Trade Essay

1178 words - 5 pages PAGE PAGE 1 International Trade Concepts International Trade ConceptsPrinciples of MacroeconomicsIntroductionSupply and demand is a world-wide economic factor. Countries that demand a particular good but do not have the capabilities to produce the good themselves look elsewhere to satisfy the demand. International trade occurs when country A has something that country B wants and country B has something that country A wants. Both parties can