OXFORD HOUSE COLLEGE

MBA Assignment

INTERNATIONAL BUSINESS ENVIRONMENT

“ The Contrasting Perspectives and Interests of Developed and Developing Coutries with Respect to Global Trade Liberalisation”

by HAKAN AYDIN
London

MAY 2010

International trade is one of the international political economy’s most controversial subjects. The trade structure is the set of relationships between and among states, international organisations, international businesses and nongovernmental organisations that together influence and manage international rules and norms related to what is produced, where, by whom, how, for whom and at what price. Together with the international financial, technological and security structures, trade links states and other actors, furthering their interdependence, which benefits but also generates tension between and among these actors and different grroups within them. International trade is a process that occurs when goods and services cross national boundaries in exchange for money or the goods and services of another nation. Trade is always political and the most debated topic in international political economy.

In the absence of a world government, cross border trade is always subject to rules that must be politically negotiated among nations and sovereign in their own realm but not outside their borders. (Kuttner Robert and Knopf, 1991, p:157)

International trade ties countries together, and in so doing, generates significant economic, political and social interdependence. However, it also causes a good deal of tension and conflict between and among different countries. For most countries, trade can be an easy way of generating income and jobs. For many developing countries, it is often critical component of development plans. Therefore, countries are compelled to regulate trade in order to maximise its