The benefits that can be identified with Reference to International Trade are as follows: International trade allows countries to exchange good and services with the use of money as a medium of exchange.
The advancement of information technology in terms of communication has changed the business environment and trade industry. Numerous benefits can be obtained by participating in the international trade industry and the WTO extends their policies and implementation of the agreement to fairly accommodate all participating countries.
This article intends to investigate the three major factors affecting the trend in the marketing and trade industry over the years due to the changes in business environment.
These changes are mainly caused by the development of information technology, globalization and power concentration of power among countries. The problem however, arises when the top players in the trade industry control these policies and misunderstandings from critics give in to the argument of fairness in trade transactions.
This article also discusses the prediction of global exchange rate in the following years and the cause of the global financial crisis. The different losses and bailouts for US and European countries is analyzed and its effect on the international trade industry and the author suggests possible solutions for the betterment of the trade industry in general.
There are different forms of trade and the advancement in technology has also changed the economic trend among various industries. In such a way that international trade, most especially in terms of supply and demand is directly related to the events happening all over the world Heakal, The conference held in Bishkek, Kyrgyzstan at the heart of Central Asia, http: For effective trade, however, there are some factors that come into play, they include: The major benefits felt from international trade are, promotion of information exchange which has led to better cultural understanding of different people, it can be attributed to raising the Advantages of international trade essay standards of some people, it has promoted democracy, raised purchasing power of some nations; there is the general feeling of a more united world and countries no longer operate in isolation Worldbank.
The most alarming trend of international trade however is it is increasing the gap between the rich and the poorthe terms of trade are not fair and developed nations seem to be getting all the benefits while the developing nations get the raw deal; it can be termed as modern day imperialism.
Countries are today more affected by the trends of other countries e. This paper intends to analyze the different benefits and problems of International Trade in the aspects of information technology modernity and the global crisis that occurs nowadays. Information Technology Three major factors have affected the trend in the marketing and trade industry over the years due to the changes in business environment.
The advancement in information technology has paved way to a faster and efficient world for international trade. Investors can communicate easily with just a click of a button and an investor can now process their business transactions online.
They may also monitor the stock exchange, foreign exchanges, import and export through their mobile phones or through different accessible financial websites. Due to the effect of information technology in the nature of international trade, many companies are interested in outsourcing their businesses as well.
To survive in this environment, businesses must effectively use technology to ensure that they can tap into the right information and act on it quickly. It has been established that information technology is essential in doing business transactions internationally, most especially in trading goods and services.
Therefore, countries participating in international trade also develop their system and technology to cope up with the environment. An example are financial websites such as Bloomberg that provide the most updated news, data, trade information and it can be viewed by people all over the well.
With this, investors all over the world participate in international trade online and can easily access vital information necessary in trade. Developing Countries The state of international trade has a great impact on the economy of developing countries most especially for those who basically rely on international trade to increase their GDP.
The rapid growth of industrialization together with the formation of numerous multinational corporations has lead to changes in the trade industry. In this statement the international trade agreement between countries is given attention as it brings advantages and disadvantages.
The international trade agreements may vary among each developing country and modern production techniques have also affected the industry. Since the industry have risen in half of the 20th century, many countries are now engaging in international trade. It has been established that in engaging in international trade, the country would be able to benefit in terms of GDP however, another factor is the highly advanced transportation systems wherein developing countries need to cope with others Shah, In their participation to this form of trade, they will have to improve their system individually.
Also, the growing transnational corporations may affect the system as it is rapidly evolving together with outsourcing of different products and services as well as a very rapid industrialization Aswathappa, Benefits of International Trade The benefits of international trade can be depicted on the countries that have developed their income and those who have obtained trade power over the years.
This will also be the case in return if a country intends to import goods from other countries that have the products and services they need.
Also, some products can only be found in a certain country such as agricultural products wherein each country has dissimilar weather thus the production of goods may vary in every country. Some agricultural products may be hard to produce in tropical countries while other countries on the other hand have an overflow of supply for that particular agricultural product.
Among others, engaging in the international trade lead to the exceptional performance of a company to cope up with existing products and service all over the world. Once a country initiates international trade, the import and export of goods is maintained and enhanced to impress other countries or regions for customer satisfaction purposes.
Problems Encountered With International Trade Following the boost of industrialization and international trade suddenly the hindrance to the trade industry approached the world. The global crisis has greatly affected the market in the economy became at a loss affecting the whole world.
Also, it is at that time when some companies have financial issues that resorted to bankruptcy and eventually closed their businesses.The law or principle of comparative advantage holds that under free trade, an agent will produce more of and consume less of a good for which they have a comparative advantage.
Comparative advantage is the economic reality describing the work gains from trade for individuals, firms, or nations, which arise from differences in their factor. Advantages Of International Trade Essay Civilization ancient the In Road Silk the is That Eurasia, traversing line trading is there area, Mediterranean to Chang’an from east.
Trade free under that holds advantage comparative of principle or law The, comparative a have they which for good a of less consume and of more produce will agent an. International trade revolves around the concept of comparative advantage which has benefits to all parties involved in the trade.
According to Negishi (), comparative advantage can be used to explain why a country with better technology tend to import or buy goods from a . Unlike other numerous websites offering custom essay writing services, we are a REAL company based in TX, USA.
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