...International Trade Speech ECO/372 July 22, 2014, 2014 International Trade Speech There are various factors that influence the activities and behaviors of international trade and the relationships between trading countries. For example, the amount of goods and services a country imports and exports may have vast effects on foreign and domestic market places, economies, and their monetary and trading policies. Exchange rates also play a role in market activity. Relationships between trading countries are also affected by trading tactics, strategies, and policies. It is important to understand how and why policies and marketplace interactions, both foreign and domestic, work and are determined, and how they affect international trade. International trade is what makes the world an amazing place to do business of all types. With international trade, businesses can import and export many goods and services that help keep prices down, but also can cause a loss of jobs from importing being too high. Nevertheless, we tend to treat imports as some sort of negative or bad thing even though, when you think about it, imports are what we gain from international trade while exports are what we pay in international trade (Mcteer, 2013). International trade has effects on the domestic markets because many consumers do not care where there product is coming from and continue to support importing regardless of associated consequences. Tuition and fees paid for by international...
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...International trade is defined as trade between two or more partners from different countries in the exchange of goods and services. International trade has been in existence throughout history and has an economic impact on the participating countries. Trade in most countries has a share of the Gross Domestic Product (GDP) and helps to boost the countries overall economy on a yearly basis. The pattern of international trade show that 50 percent is between developed countries, while 35 percent falls between developed and developing countries, also known as North/South trade. The 15 percent of international trade is made up by developing countries trading commodities. Often trade between developed countries consists of high tech goods while developing countries have valuable basic staples. Developing countries import technology and machinery from the developed countries, these machines help in increasing production and also bringing down the cost of production, however due to the high cost of these machines the developed countries prefer to use labor intensive methods of production due to high initial cost and also maintenance costs. Countries are looking to have a comparative advantage in producing at least one product that will allow them to trade that product at a lower opportunity cost. Free Trade is the concept we use when referring to selling of products between countries without tariffs, fees, or trade barriers. Free Trade simply is the absence of government interference...
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...International Trade and Financial Market: Chapter 1: Issue of Globalization Globalization: Benefits: 1) Boost trade 2) Outsourcing companies benefits the most 3) Cut costs (segments below cons) 4) New experience for workers (working abroad) Shortcomings: 1) Certain segments loose their jobs. 2) Slides: Globalization: 1) Greater interdependence among nations 2) Trade, immigration, and foreign investments (find same products everywhere) 3) Movements of workforce, finance and goods 4) Cultural and environmental factors (for ex: language barriers so it can be a disadvantage) [environmental factors: environmental issues not applied in every countries, for ex polluting and dnt care about the environmental standards). 5) Occurs on political, technological, cultural and economic levels (integration of the aforementioned factors) History of Globalization: 1) 1870 – 1914 2) Technological improvements in transportation 3) Dominated by European and American businesses 4) Brought to an end by WW1 5) Great Depression prompted further limitations on trade and protectionism (protect local producers) Second wave of Globalization 1) 1945 – 1980 2) Result of reaction against nationalism following ww2 as well as lower transportation costs 3) Dominated by developed nations with developing nations largely excluded 4) Lead to a greater increase per capita income for developed countries than for...
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...International Trade The United States is one of the largest international trade countries. International trade is the exchange of goods and services which impact consumers’ everyday lives. With current technology communication has become easier and much faster for international trading. A surplus of imports into the United States will drop the price of the imported product. With a surplus business will have too much in inventory and will need to get rid of the inventory, even if the business takes a loss on the product just to clear the inventory out. A surplus for the consumer is buying products at a lower cost (Colander, 2010). Car dealers are one example of a business’s cleaning out inventory at a lower cost. Car dealers need to clean out current inventory to provide space on the dealer lot for the new vehicles to come in. Most car dealers run an end of the year special that reduces the price of their inventoried cars. The problem with end of the year sales is that the majority of the models left will be the unpopular or overstocked models. (Gorzelany, 2012). The United States is a large contributor to international trade. The United States GDP (Gross Domestic Product) is impacted because the United States relies on products from other countries (Colander, 2010). The United States imports more product than they export lowering the GPD. Because the United States buys more from other countries there is an impact on the United States domestic market. A tariff is a...
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...International Trade ECO/212 Introduction International trade has truly expanded to encompass most of the world over the past century. The countries of the world have seen that everyone can benefit from specializing in the production of a certain good or set of goods and by having skilled workers that provide services to others. This trade off in strengths and weaknesses help get some commodities to locations that would otherwise be unable to attain goods or services that they need. The world of trading between countries is ever changing with the advancement in technology that becomes available to countries. Pros and Cons of International Trade The importing and exporting of goods across the globe is regulated by the World Trade Organization (WTO). This, like many other organizations have multiple benefits and drawbacks for the parties involved beyond practical application of rules and policies. One major benefit of the WTO is that they allow for trading on neutral ground allowing neither of the parties involved to obtain an unfair advantage during the trade agreement process. Any disputes that arise between two or more trading parties are also handled by the WTO which is also a benefit of having the organization in place. The organization itself acts as a mediator or referee of sorts when it comes to the process of trade between nations across the globe. This type of organization also has drawbacks when it comes to certain real world application in certain aspect...
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...International Trade and Stimulation Univerisity of Phoenix Angela Rogers September 2, 2012 The simulation has provide reasons for international trade and helped me to determine which countries that we should trade with, what type of products we should import or export. I will also be able to determine when we should impose trade regulations such as tariffs and quotas. If our country should buy or sell any type of goods or services this is considered trading. International trading is considered really controversial while domestic trading does not have as many problems as international trading seem to have. If you should purchase items that are foreign made products the prices are lower and the quality of the product is better than an item that made in the United States. The practice of internationally trading has caused some companies within the United States to go out of business. This means that the employees that work at the companies will lose their jobs because of businesses closing in the United States. If you should ask most Americans they are in favor of keeping jobs in the United States instead of the jobs going overseas. This means that Americans are in favor of reducing international trading and buying American made products. The change in government policy, inexpensive communication and shipping has increased due to the results of international trading. Governments have changed policies that effect international trading by lowering...
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...country experiences a positive balance in exports over imports it creates a trade surplus when means it has more cash flowing inward that outward. The trade surplus is comprised of the cash a country receives for the goods and services it exports and funds foreigners spend during their visits (Wisegeek, 2013). When a nation can sustain a positive effect on its trade surplus is an indication that it has a strong control its currency. International trade is the exchange of goods, services, and capital between countries. The United States has become a major competitor in the international trade market to countries such as Japan, and China. These countries along with the United States produce some of the same products for consumer consumption such as computers. Dell computers are made and exported by the U.S. and its chief competition is Toshiba which is built in and is an export of Japan. Depending on what the current exchange and interest rate is in the United States a surplus could be created. According to Froning (2000), "International trade is the framework upon which American prosperity rests” (The Benefits of Free Trade: A Guide For Policymakers). Today’s open market creates a level of competitiveness that spawns a persistent array of innovative thought that can effect new markets, product improvements, higher quality of exceptional paying jobs, and an increase in investments and savings. Free trade has a positive effect on the American consumers by exposing them to more goods...
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...Saudi Arabia has maintained a trade surplus since 1967 (when its trade statistics were first compiled in their current form). As the kingdom generates a majority of its revenue from petroleum exports, this surplus tends to rise and fall with the price and production of oil. After the oil embargo of 1973, when oil prices were high, the king-dom's trade surplus rose, increasing steadily until 1978. This trend continued after the Iranian revolution of 1979 when oil prices rose to new levels. Between 1978 and 1981 Saudi Arabia's trade surplus doubled, reaching a peak of US$82.5 billion. Trade (expressed in billions of US$): Saudi Arabia Exports Imports 1975 29.682 4.213 1980 109.083 30.166 1985 27.481 23.622 1990 44.417 24.069 1995 50.040 28.091 1998 N/A N/A SOURCE: International Monetary Fund. International Financial Statistics Yearbook 1999. The surplus declined steadily throughout the 1980s as export volume diminished and oil prices fell. By 1985, the balance of trade had fallen to just US$7 billion. In 1990, Iraq invaded Kuwait, prompting the United Nations to place an embargo on Iraqi oil. The cut in supply sent prices back up, and as Saudi Arabia heightened production to meet world demand (from 5.1 million b/d in 1989 to 8.2 million b/d in 1991), export revenues increased and the trade surplus rose once again. In 1996, export revenues exceeded import expenditures by US$35.3 billion. In 1998, the world economy slowed. At the...
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...International trade is the exchange of capital, goods and/or services across international borders. Recently, there has been an increase of political, social and economic importance. Globalization, multinational corporations and outsourcing are all some examples that have a major impact on the international trade system. If there was no international trade, these territories would be limited on the goods and services produced within their own border. For me, personally, I particularly am against the unrestricted international trade. As with any important business decision come risks that must be taken into factor. When dealing with international trade, the following risks become evident: 1.(Politically): There is a risk of non-acceptance. There may be an issue where the exchange of these goods and/or services may not live up to the expectations of what one party is expecting. Thus this may lead to negative relations with other countries. 2. (Business): The expansion of international trade has opened up a wealth of opportunity for many businesses since they are able to extend operations to a global level. This opportunity both increases and diversifies the kinds of business ventures companies can embark upon, giving them a chance to expand their wings and become more competitive. 3. (Economic): Taxes are an important aspect which has an effect on international trade. Governments typically impose tariffs on any trade products, and while not normally a threat, this can put your...
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...The Heckscher-Ohlin theory explains why countries trade goods and services with each other. One condition for trade between two countries is that the countries differ with respect to the availability of the factors of production. They differ if one country, for example, has many machines (capital) but few workers, while another country has a lot of workers but few machines. According to the Heckscher-Ohlin theory, a country specializes in the production of goods that it is particularly suited to produce. Countries in which capital is abundant and workers are few, therefore, specialize in production of goods that, in particular, require capital. Specialization in production and trade between countries generates, according to this theory, a higher standard-of-living for the countries involved. New notes The Heckscher Ohlin model Introduction The Heckscher Ohlin model Predicts that different factor endowments between countries is a key issue in the international trade flows but others such a WW Leontief, who in 1954 tried o test the theory empirically, found that this model failed to explain United States trading patterns. Read more: http://www.ukessays.co.uk/essays/economics/heckscher-ohlin-model.php#ixzz2DPfWNkhU The Heckscher Ohlin assumption The Heckscher Ohlin theory explains why countries trade good and services to each other. To apply this theory countries have to respect conditions; one of those is that the countries obviously differ with respect to the availability...
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...Module Code: EO314 Module Title: ISSUES IN INTERNATIONAL ECONOMICS Module Convenor: Stephen Smith ID: 03004367 Topic: INTERNATIONAL TRADE This project will attempt to research and gain an understating of whether there is linkage between trade liberalisation and poverty in (SSA) sub Saharan Africa. The project will contain a balance of key analytical approaches and empirical evidence on trade liberalisation and economic growth. In the world of economics and politics, trade and poverty is one of the major issues which has been debated over last decade. On the international stage, there is a growing concern among super powers, African leaders, and other observers that the independence and credibility of the state continues to be endangered due to the negative balance of trade, heavy dependence on international aid and the high levels of indebtedness in Sub Saharan Africa. The debt relief has come to be viewed not only as a basic condition for arresting Africa’s socio-economic decline but also for stimulating and sustaining development. Consequently, debt has had an adverse impact on the majority of the population, poverty, unemployment and socio-economic, inequalities has increased, physical infrastructures has deteriorated, political and civil conflicts have worsened and corruption has become more persistent. The concern with how to tackle the debt crisis has led to a number of developments, however the main one is for the G-8 countries to have adopted...
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...International trade theories and the Indian software industry Different theories developed throughout time exist regarding international trade. In this first section the most important theories will be discussed and compared, leading to an explanation of the location-specific advantages of the Indian software industry. The most well-known international trade theories are mercantilism, the theory of absolute advantage, the theory of comparative advantage, and the factor endowment theory (Heckscher-Ohlin theory). Mercantilism is based on the beliefs that a nation’s wealth depends on accumulated treasure, and that government policies should encourage exports and discourage imports so as to increase wealth (Ball et al.) Over time is has become clear that this theory contains many flaws and is not widely applicable. Whereas mercantilism is a theory which assumes that government control determines all aspects of international trade, other theories rather assume that market forces are the determinants of the direction, volume and composition of international trade (Ball et al.) When a country, firm or individual has an absolute advantage it implies that, the firm, country or individual can fabricate more goods, or the same amount of goods more efficiently than its competitors for an equivalent amount of inputs. Occasionally it occurs that a country, firm or individual solely has absolute disadvantages. In such cases the good produced at the lowest opportunity cost is...
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...* What are the effects of international trade to GDP, domestic markets and university students? Throughout history trade amongst international countries has existed. Countries may import and export their goods, and the prices of importing or exporting will be determined by how high or how low the exchange rate will be. The Gross Domestic Product, also referred to as GDP, is the total amount of goods and prices a country produces in one year. The International trade will have effects on GDP by expanding our markets with the importing of goods and services that are not available in this country. Products such as coffee, oil, bananas, and cars from other countries like Japan and Germany. The import of goods may increase our economy GDP and may also allow U.S. to export their own product helping other countries to have the economic expansion as our country. However, International trade provides economic expansion and diversity of goods and services that will result in more competitive prices that will increase market competition among producers, which provide domestic consumers with cheaper products. * How do government choices in regards to tariffs and quotas affect international relations and trade? Although trading and importing products is a great thing for expanding economies, it also has disadvantages. Governments impose certain restrictions and limitations for trading to protect domestic production. Governments apply taxes on trading...
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...a. Section 47 b. Section 88 c. Section 74 d. Section 40 Risks arising out of foreign law due to________________. a. Lack of knowledge about foreign market b. Expensive and complex litigation c Both ‘a’ & ‘b’ d. None of the above Import LC is also known as ______________________. a. Letter of Debt b. Bills of exchange c. Open account d. Letter of credit How much digits are there in IEC number? a. 8 b. 10 c. 12 d. 15 What is the full form of RFID? a. Rural Fund Information Development b. Request For International Development c. Radio Frequency Identification System d. Radio Frequency Internal System The Export Inspection Council is a _____________________. a. Support the export corporation b. Responsible for the enforcement of QC c. Administrative control of the ministry of Commerce & industry d. Provides consultancy to export organization 2. 3. 4. 5. 6. 1 IIBM Institute Of Business Management Examination Paper: Export and Import Management 7. The World Trade Organization was formed in_________________. a. 1994 b. 1995 c. 1996 d. 1997 Government policies are related to__________________________. a. Income tax b. Sales tax c. Both ‘a’ & ‘b’ d. None of the above Clearing and forwarding agents are an important link between_______________. a. The exporter and various other agencies b. The importer and various other agencies c....
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