International trade Essay Example | Topics and Well Written Essays - 1000 words

International trade - Essay idealmainland China and the south East Asian countries such as Singapore have been in contract for their export based economies (Rivera-Batiz & Oliva, 2003). External trade is usually heavily controlled by countries by applying duty against upshots and subsidizing exports. forgive trade means the government does not discriminate against national and foreign producers of goods. The price of goods is determined by means of the equilibrium of supply and demand. A country which allows free trade does not impose high import duties and neither does it subsidize its exports through schemes and promotions. Body 2)Advantages of International Trade The major advantages of international trade atomic number 18 It enhances the competitiveness of local industries as they come into contact with international best practices and technological knowhow. It helps the country to vote down the shortage in born(p) resources. One example is the import of crude oil by so me countries to overcome the natural deficiency. International trade allows consumers to buy products at low cost. An example of this has been the proliferation of manufacturing industries to China. Manufacturing goods produced in China are low cost and thus leads to benefits to the end users. International trade nookie be a vehicle for poverty reduction. China has increased its GDP rapidly in the last 20 eld by becoming an export hub for international companies. This has reduced poverty and created employment for a billion Chinese (Rivera-Batiz & Oliva, 2003). Disadvantages of International Trade Some of the main disadvantages are International trade can lead to desolation of local industries if they are not able to compete with the cheap products imported from abroad. International trade can lead to jobless growth of the economy. This can cause social unrest among the population. India is a country whose exports more often than not consist of services such as Information tec hnology. However IT is a capital intensive domain which creates very few jobs leading to large scale unemployment in the country. International trade can alike lead to depletion of natural resources such as coal, iron-ore etc. if they are exported to other countries (Rivera-Batiz & Oliva, 2003). International trade has as well as caused various environmental and human rights concern. It is alleged that the factories in China and Mexico do not follow the exigent environmental guidelines followed in developed world. They are also accused of employing child labour to reduce the cost of products (Rivera-Batiz & Oliva, 2003). 3)Major Trading Partners of UAE The major trading teammates of UAE are Japan, China, European Union and India. Japan is UAEs biggest export partner (17.27% share) and China is the biggest import partner (15.03% share) (Oxford Business Group, 2010). 4)Most Important Exports OF UAE The most important exports from UAE are crude oil, natural gas, fish, dates and pr oducts which are re-exported after processing (Zaman, 2011). 5)Trade Policy of UAE UAE signed the General Agreement on Trade and responsibility (GATT) in 1994 and became a WTO member in