StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...

International Trade - Essay Example

Cite this document
Summary
International Trade International trade has expanded rapidly in last few decades. A growing international trade benefits to the consumers as they get the goods at the lowest possible prices but at the same time it affects domestic markets, students and GDP of the country in a varying way…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER95.5% of users find it useful
International Trade
Read Text Preview

Extract of sample "International Trade"

Download file to see previous pages

Most of the countries participate in such trades. The US exports high tech goods such as aircrafts, chemicals and ammunitions and at the same time it imports consumer goods, which are traded internationally at much lower prices. Usually, Gross Domestic Product (GDP) and employment has a direct correlation; that is to say, employment or new jobs in the country rises in tandem with the growth in GDP. Gross Domestic Product, in the economic parlance, is the measure of goods and services that are produced in the country.

GDP is the sum of the incomes of all the residents within the country. It is also measured by adding all kinds of spending such as government spending, investment spending and consumer spending. All exports generate incomes at home and they are part of GDP. Imports do not form a part of the GDP as they generate incomes abroad. For many years in US, imports exceed exports. That means domestic markets suffer in the goods that are imported. For example, steel import disrupts domestic steel industry resulting into a closure of many units and the loss of jobs.

The government often imposes tariffs on certain products to make imports costlier safeguarding domestic industries. At times, the government resorts to quota system and restricts imports within predetermined quota for a given country. This is usually found in textiles and garments business where quotas are allotted to the countries beyond, which they cannot send material into US. Tariffs restrict international trade as they are one kind of tax on imported good and make imports costlier. The university students in US are not benefitted as consumers of other industrial goods because education industry in US is a big exporter.

A huge number of students from other countries enroll in US universities for study and research by paying huge tuition fees in US dollars and spend in US for their essential needs during their learning. Since 1930s, many countries have supported free trade among nations by reducing tariffs. That is how the process of globalization has progressed at the rapid pace and world trade touched to the tune of almost $12,400 billion by 2009 (International Trade Statistics, 2010 p.12). World Trade Organization (WTO) works toward reduction of tariffs and smooth flow of goods and services among the nations.

The WTO also works to discourage retaliatory taxes among nations. When two countries trade their currencies form a relationship for transaction to place. It is true that exchange rates between two currencies are governed by the demand-supply dynamics of the currencies that arise due to trade between two countries. When US imports more Chinese goods and exports less to China, a trade gap also called balance of payments is created causing more demand for Yuan against dollar. When this continues for a long, dollar tends to depreciate against Yuan.

In 2011, the US exported goods worth $103.93 billion to China while imported goods worth 399.36 billion creating trade gap of $295.5 billion. The trade gap was $273 billion and $226.8 billion in the year 2010 and 2009 respectively. The figures reveal that the trade gap is constantly on the rise and the reason for this is that the China produces hosts of goods at much lower the cost compared to the producers in US. The US consumers have benefitted a lot due to these

...Download file to see next pages Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“International Trade Essay Example | Topics and Well Written Essays - 750 words”, n.d.)
International Trade Essay Example | Topics and Well Written Essays - 750 words. Retrieved from https://studentshare.org/other/1400349-international-trade
(International Trade Essay Example | Topics and Well Written Essays - 750 Words)
International Trade Essay Example | Topics and Well Written Essays - 750 Words. https://studentshare.org/other/1400349-international-trade.
“International Trade Essay Example | Topics and Well Written Essays - 750 Words”, n.d. https://studentshare.org/other/1400349-international-trade.
  • Cited: 0 times

CHECK THESE SAMPLES OF International Trade

International Trade Simulation

International Trade Simulation One advantage and one limitation of International Trade While engaging in trade with other countries, Rodamia may have to face the issues regarding the valuation of its currency against the valuation of the currency against other countries.... International Trade Simulation One advantage and one limitation of International Trade While engaging in trade with other countries, Rodamia may have to face the issues regarding the valuation of its currency against the valuation of the currency against other countries....
3 Pages (750 words) Assignment

Improving China's International Trade

The present research "Improving China's International Trade"  is devoted to the critical evaluating and analyzing International Trade of China as one of the decisive factors in its economic growth and development.... nbsp;… The transition of the China's economy towards openness in the area of external economic ties implies the solution of the set tasks for the account of International Trade expansion, attraction of the foreign capital in the productive form and the use of foreign credits....
8 Pages (2000 words) Essay

International Trade Project

When the… However when the economy opens up and International Trade takes place, it is the differences between world and domestic prices that encourage trade or in other In this the world price is $1 which is way below the domestic price of $3.... Assuming that free trade takes place i.... Despite all the benefits of free trade, barriers to free trade do exist....
3 Pages (750 words) Essay

Microeconomics - International Trade

International Trade is a part of the microeconomics… This is the basis of bringing trade goods and services towards newer markets, customers and stakeholders all around the globe. I will be discussing International Trade within this paper because the International Trade has come about due to globalization where boundaries have become nearer and the countries have come closer.... This is the age of International Trade as everyone is talking about this....
7 Pages (1750 words) Term Paper

Economics of International Trade

The main reason for the changes in the International Trade was the differences that came up due to the changes in the imports and exports form the developing countries.... International Trade was… 1). The chances in the imports and exports in the International Trade affected employment in the countries.... That is the control of trade during this time Changes in the International Trade influenced by the inequality International Trade patterns have tremendously changed in the past twenty years....
2 Pages (500 words) Essay

International trade & business

Both hypothetically and virtually, the worldwide impacts of International Trade can be pragmatic in different social, cultural, political,… The world's economy is persistently taking a more global shape and this paper takes a close look at the issues regarding the International Trade (Fernald and Greenfield, 2001).... It also describes the role of driving forces behind the firmly integrated global International Trade system.... A substantial preference is given to underline the implications of International Trade i....
5 Pages (1250 words) Assignment

Issues in International trade

International Trade has given rise to a world economy in which prices or supply and demand affect and are affected by global events.... International Trade gives consumers the… Almost every type of product is found in the international market.... Some of the issues are discussed as follows: A reduction in trade barriers allowing for integrated global economies and permitting International Trade will affect the environment through the expansion of economic activities....
5 Pages (1250 words) Essay

International Trade Questions

The assignment "International Trade Questions" provides the number of answers to the questions that have been studied throughout the course.... The term 'DDP' is ideal if clearance of products for imports comprises the fee of value-added tax or corresponding tax which can only be subtracted for tax determinations by an organization for International Trade.... The four most significant factors which impact on the volume of International Trade are tariff, exchange rate, the housing market, and production....
8 Pages (2000 words) Assignment
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us