Given the specific natural endowments every country should specialise in the production and export of only that commodity or commodities in the production of which it has greater comparative cost advantage than the others. Get Free Sample Of Strategic Management Alliances and International Trade Question Paper PDF and Get Upto 53% OFF on MRP/Rental. Chat with your writer now... © 2019. (a) Explain how international trade enhances the possibility of economic development in India. Countries like the U.S.A., England, Germany and Japan are abundant in capital. All rights reserved. INTERNATIONAL TRADE. Term Paper on International Trade Term Paper # 1. Review and cite INTERNATIONAL TRADE LAW protocol, troubleshooting and other methodology information | Contact experts in INTERNATIONAL TRADE LAW to get answers For instance, India has been exporting iron ore, manganese and mica and the Middle East countries export petroleum products just because they are well-endowed with these materials. Both developed and poor countries have to depend upon foreign capital for financing international payments deficit and economic development. It signifies that the conditions governing the exchange of goods within different regions of the same country are not applicable in the case of exchange of goods among the different countries. In this case, it helps those industries develop because they believe that industries will create their economy’s backbone in future (Will 93). Since the times of Mercantilists, who had advocated the accumulation of gold or wealth through creation of trade surpluses by the promotion of exports and restrictive import policies and classical economists, led by Adam Smith, who supported the free international trade, the trade among nations has been given a place of pride in the economic progress of nation. < http://www.ehow.com/info_12201440_benefits-tariffs-quotas.html>. The countries like Australia and Canada produce and export farm products. View Question Paper IE.docx from FINANCE 100 at Indian Institute of Foreign Trade. It creates consciousness about the problems faced by the different countries related to balance of trade and payments, international debt payments, exchange rate fluctuations, tariff and non-tariff barriers and shortage of invisible funds for development. Institution: Kenyatta University question papers. In the words of Haberler, “International trade has made a tremendous contribution to the development of less developed countries in the 19th and 20th centuries and can be expected to make an equally big contribution in the future.”. There are alternative strategies of growth. The shoe maker does not attempt to make his own clothes, but employs a tailor. Within a given country a single uniform national policy governs the domestic or inter-regional transactions. It is possible to extend Marshallian analysis of value in the single market to the phenomenon of international trade that involves more or less closely related several markets. In view of such complexities related to international trade policies, it seems appropriate to treat international trade as distinct from the domestic trade. The complications in international trade are therefore, caused by the availability or shortage of foreign currency reserves, exchange rates, ease or difficulty in conversion, controls and restrictions on foreign exchange etc. – can be used. Term Paper, Economics, International Trade, Term Paper on International Trade. The free flow of products of industrialised countries does not permit the indigenous production of manufactural goods. Therefore, the government intervention is because it needs to protect its country by limiting trade and directing investment within the nation to industries that it believes will be significant for the country in future. Therefore, trade dependency enables the developed nations, such as China, Taiwan and others, to further promote their domestic industries. BA7401 - International Business Management - Model Exam Question Paper - Anna University Sylabus It is, in fact, this recognition that has accorded to international economics the status of an independent branch of economic theory. The revenues from the taxes are collected by the government; hence protect domestic businesses by keeping citizens in employment. It is believed that the international trade can encourage the flow of development finance from the advanced countries to the poor. Therefore, government obtains revenue through these forms of taxes. This is done at low prices, which lead to better international relations, economic corporation and foreign exchange. The advanced countries have fought two World Wars in the last century just for scramble of colonies or the sources of raw materials and dumping places for their manufactured goods. No such problem exists in the domestic trade. For example, China relies on agriculture product exports to Japan. The international trade has created an acute problem of repayment of international debts. In the case of negative dependency, winners are said to follow losers while losers follow winners. KENYATTA UNIVERSITY UNIVERSITY EXAMINATIONS 2010/2011 INSTITUTIONAL BASED PROGRAMME (IBP) AUGUST SESSION When it has been fully recognized that the international trade is distinct from the internal trade, the most relevant question concerns the distinguishing features of international trade. The farmer attempts neither the one nor the other, but employs those artificers….If a foreign country can supply us with a commodity cheaper than we ourselves can make it better buy it from them with some part of the produce of our own industry employed in a way in which we have some advantage.”. Here is a term paper on ‘International Trade’. The international trade promotes competition among the different countries. On the basis of the peculiarities and distinguishing features, it is proper to recognise that the classical writers are on a strong wicket when they stress upon a separate treatment of international trade theory from that of domestic trade. Faced with the excessive strain of payments deficit, the less developed countries are not likely to achieve a higher rate of growth. TOS4. Get homework Help now! Even that necessitates a separate treatment of international trade from the domestic trade. PAST QUESTION PAPER FOR INTERNATIONAL TRADE . Mill recognize that the inter-regional trade is fundamentally different from the international trade. Their reactions to such policies may vary from resentment to retaliation. – can be used. Consequently, it should be recognised that there is neither perfect factor mobility within the same country nor prefect immobility of factors among the different countries. Most of the less developed countries are engaged in the production and export of primary products. It is true that international specialisation in production and exports has some merits but it is also important to recognise some of the problems created by it. In case of certain currencies, known as soft currencies, the convertibility is easy but in case of hard currencies, the convertibility can be difficult. International trade ensures the application of the principles of division of labour and specialisation to the fields of production and international exchange of commodities by the various countries. They are prepared to make sacrifices and adjustments for the sake of their compatriots. Such differences may not exist in the case of markets within the same country. This type of expectation has not been realized. The difference between internal and international mobility of factors is only that of degree. International trade theories are simply different theories to explain international trade. This is referred to as positive dependency because, wins go after wins while losses go after losses. On the basis of logic of free international trade, the advanced countries have continued to exploit the natural resources of the poor countries for the expansion of their industries and their markets for dumping their exports. The classical assumption of perfect mobility of factors within the country and their perfect immobility among the different countries is, however, too drastic and not acceptable. For this reason, the government intervenes in such situations to solve market failures or issues of fairness and equity. Web. No. paper related to international trade (April 19), international migration (May 17), or multinational enterprises (May 31). Suppose a country subsidizes its exports and other country imposes The international trade emphasises upon the mutuality of interests among the trading countries. Some of these adjustments may be to the disadvantage of one or more trading partners. The classical writers including Adam Smith, Ricardo and J.S. The major arguments against the international trade from the point of view of less developed countries like India are as follows: (i) Exploitation of Resources and Markets: The less developed countries are well-endowed with natural resources including minerals, farm and forest products. ECO 352 – International Trade – Spring Term 2010 SAMPLE FINAL EXAMINATION IMPORTANT INSTRUCTIONS: 1.No electronic equipment – computers, calculators, cell phones etc. Share Your PPT File, Notes on the Central Problems of an Economy [with its solutions]. In this way, the foreign trade can efficiently deal with the problems of internal inflation or deflation and ensure a greater degree of stability in prices. For instance, in the United States, the government offers in-country service interventions in combination with other service providers. This website includes study notes, research papers, essays, articles and other allied information submitted by visitors like YOU. Or (b) (i) Discuss the barriers of international trade. In case of international trade, there is no such cohesion as the peoples of different countries belong to different political entities. The poor countries also expect that their growing trade relations with advanced countries will enable them to secure advanced technical know-how for the transformation of their productive sectors. They co-operate among themselves to resolve these problems in the spirit of co-operation and understanding and devise bilateral arrangements that serve their common interests. (15 marks) Discuss the advantage of disadvantages of indirect exporting as a mode of entering foreign markets. This leads to an optimum allocation and utilisation of all the productive resources of the world. In addition, the free competition can provide protection from the monopolistic exploitation at the hands of domestic producers. (a) What is the scope and function of WTO? For instance, in some trading methods or systems, appealing trades are likely to follow other appealing trades and losses are likely to go after losses. The less developed countries by their historical experiences know that international trade had resulted in their political slavery and exploitation. International trade is defined as trade between two or more partners from different countries in the exchange of goods and services. Emmanuel Odiwe | 2019-03-27 18:46:26; For support, WhatsApp : 08141312217. The International Trade is a very important aspect in the positive growth of the world economy. In this case, the country is able to utilize its wealth to further manipulate other developing states to implement policies that boost their wealth. These are quite distinct from the theory related to interregional or internal trade. survive in the toughest of times nowadays have to have good international trading capabilities. The multinational corporations keep their techniques as guarded secrets. The international competition increases the efficiency of production. They help the government to safeguard jobs by hindering overseas competitors from selling goods at prices that are excessively low for domestic businesses to match. The writers like Bertil Ohlin and Haberler have refuted the classical viewpoint. “The Benefits of Tariffs & Quotas”. Since, the quotas tax protects domestic job they make sure that overseas products are not imported in adequate numbers to meet the existing demand. As a consequence, the terms of international trade have invariably remained unfavourable for the poor countries. Each country is guided by enlightened self-interest and there is little concern about terms of trade becoming detrimental to some foreign country. Question 4. In conclusion, the taxes are used to limit world trade, which in turn reduces total production, diminishes economic efficiency, increases prices and encourages retaliation, which in turn benefits both government and citizens. Whether you are looking for extra hours to be with your family, ill or you are running out of time, simply contact our MBA Writers via the order button below and we will be glad to assist... Why should you submit your homework late when you can simply have one of our MBA Writers have it done so perfectly as if you wrote it yourself? A free list of international business topics for research is suggested here by the Students Assignment Help as research paper topics help. 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