International Trade Report

1617 words - 7 pages

Econ 212 Principles of Economic

What is International Trade? What are the limitations and advantages of free trade? We will answer these questions as well as exploring comparative and absolute advantage, and the influences affecting foreign exchange rates. We will also explain the purpose of the World Trade Organization (WTO), and give an example of a current trade topic.
International Trade is the exchanging of goods and services between two separate nations. If a nation did not participate in free trade, it would be limited to only the goods and services it could produce. By participating in free trade, a nation opens itself to an increased variety of goods and services, ...view middle of the document...

In order to maintain a balance between imports and exports, sometimes nations will impose import quotas or tariffs. An import quota limits the quantity of a good or service that can be imported for a specific amount of time. A tariff is a tax imposed on the good or service that is being imported. Although there are some disadvantages of free trade (inhibits domestic jobs, unfair competition, jeopardy of national security, etc.), the gains from free trade far out way the losses.

Comparative & Absolute Advantage
There are many different advantages that can be gained when working in the different economic markets. The most important advantages are known as comparative advantage and the absolute advantage. Absolute advantage is the ability of a particular person or country to produce a good or service with less resources than another country or person. Comparative advantage is the ability of a person or a country to produce a particular good at a lower opportunity cost than another person or country.

Influencing Foreign Exchange Rates
Foreign Trade is one of the things that have a strong hold on the way the economy works globally. The one thing that ties the entire world together is the exchange rate by which our currencies are traded. There are many different things that influence the way the exchange rate is modeled. The factors that make the exchange rate what it is are: domestic economic and political conditions, Speculation over future currency values, and Central bank intervention. Speculators buy or sell currency when they think that they have a better chance of making a profit. This affects the amount of a certain currency that is on the market at that point in time. Central banks may buy or sell currencies to influence the value of their countries currency. This exactly what the US government has done; selling American bonds to other countries hoping that it will boost the value of the dollar abroad. When dealing with the domestic economic and political conditions; it is important to note that the deteriorating economic conditions and inflation have an adverse affect on the foreign exchange rate.

International Trade Debate
International trade is the exchange of goods and services between two or more countries. There are many positives to international trade. It allows for goods or different types of services that are likely unavailable to in a particular area to be consumed; which adds culture and variety. Importing certain raw materials also allows a country to produce products that normally would be impossible; thus boosting this country’s economy. Services are also traded, such as tourism, consulting, and transportation ( Along with the positives come issues that some believe have a negative effect on our economy which leads to Protectionism.
International trade is something that the government regulates with a protectionist approach. This approach involves the use of tariffs,...

Other Papers Like International Trade Report

Equilibrium of Prices Essay

3602 words - 15 pages States from China. Instead of importing Chinese labor, the United States imports goods that were produced with Chinese labor. One report in 2010 suggested that international trade was increased when a country hosted a network of immigrants, but the trade effect was weakened when the immigrants became assimilated into their new country.[2] International trade is also a branch of economics, which, together with international finance, forms the

Trade Paper

1718 words - 7 pages International Trade International Trade Learning Team C November 15, 2010 ECO/212 Nancy Irizarry INTERNATIONAL TRADE International trade is very important to a global economy. When countries can trade products and services that they produce with other nations without obstacles, it creates a robust economy for those exporting and importing their products and services. However, there has to be a balance between the nations to


1652 words - 7 pages International Trade Simulation and Report ECO/212 April 17, 2011 University of Phoenix In our world economic system today import and export can be the heart and soul. Most all the states throughout the world export and import merchandises and goods based on their necessities. The governments exercise their studies with in-depth consideration, restrictions and limitations. In this report we will discuss the benefits and restrictions of

Recommendation For Brazil Trade Policy

1152 words - 5 pages world's principal markets.This report critically evaluates the Brazil's International Trade Policy with regards to some key trade issues such as trade barrier, subsidies, financial export program etc. And the main benefits and limitations of current trade policy are identified. Brazil's tariff and non-tariff barrier such as restrictive legislation on service sectors and high applied rate of automobiles, motorcycles toys may hamper its products

Trade Facilitation and Development

1478 words - 6 pages Trade facilitation and development World trade has expanded rapidly over the past decades. This has been driven, in large part, by the changing nature of both production and increased competition in international commerce. Another important factor contributing to the growth in trade has been the periodic rounds of successful multilateral trade negotiations. These talks at the World Trade Organization (WTO) have led to a considerable reduction

Roles of International Financial Institutions

1203 words - 5 pages Roles of International Financial Institutions Marcus Jenkins MGT448 January 10, 2011 Paul Bogert Introduction When listening to the latest television report concerning global business news or world economics, names of financial institutions such as World Bank, International Monetary Funds, and Asian Development Bank may be the center of some discussion. A major player on the global forefront, international financial

Trade Simulation Report

1610 words - 7 pages International Trade Simulation and Report Team B: Kimberly Castillo, Tanya Bell, Elijah B. Gowdy, Derrick Brown ECO/212 June 6, 2012 Instructor, John Holmberg One Advantage and One Limitation of International Trade Advantage and limitation of International Trade, Countries have different quantities, qualities, and cost for resources such as land, labor, capital, and entrepreneurship (University of Phoenix, 2009

What Do You Think of the World’s Economy?

1485 words - 6 pages In our world today there are many forms of economy. The General Agreement on Tariffs and Trade, International Monetary Fund, and Third World Debt, give the new world a chance to develop their current trading policies. Throughout history, the countries of the world have traded and developed their economies, new systems have become known, also allowing the human race to cultivate along with it and acquire bigger and better necessities. Having


312 words - 2 pages Political factor: If Nike wants to open international market such as China, the company would get disadvantages because every country will protect and priority for its domestic products. So, the company must find out exactly these requirements that the country require in Nike to overcome these barriers. International trade regulations The trade regulations in China are formulated in accordance with the "Foreign Trade Law of the People's

International Business

936 words - 4 pages can be a big factor in developing world’s economy. Term of globalization can represent and mean a lot of different things, but mainly globalization/international business are known for their flows of trade, finances and factors of production across the border, and transportation with effective communications set up. Globalization is responsible to make our world a “global village”. Globalization can develop strong international bonds not just

International Finance

817 words - 4 pages chance to make an report on “Otobi Furniture: Opportunity, Barriers & Possibility Of Export Diversification.” We have tried our best to do this report properly. For doing this report, we went through some books and lectures on International Business, talked to concerned officers and sales persons of Otobi Furniture, and visited to general people & linked websites several times. And finally we want good wishes from all and generous

Related Essays

International Trade Simulation And Report

1590 words - 7 pages International Trade Simulation and Report Taruh Cravens, Melody Jones, Geneva George-Williams, Ruby Morgan, Nicole Southerland ECO/212 Blake Bennett International Trade Simulation and Report This paper is a team correlation on the knowledge gained from our course of study and how the concepts are applied, how international trade affects the U.S, economy, and addresses the four key factors from our weekly reading assignments that

International Trade Simulation And Report

1590 words - 7 pages International Trade Simulation and Report Taruh Cravens, Melody Jones, Geneva George-Williams, Ruby Morgan, Nicole Southerland ECO/212 Blake Bennett International Trade Simulation and Report This paper is a team correlation on the knowledge gained from our course of study and how the concepts are applied, how international trade affects the U.S, economy, and addresses the four key factors from our weekly reading assignments that

International Trade Essay

1845 words - 8 pages International Trade Simulation and Report Krystil Hargiss, Sheila Zablocki, Casey Powell, Heather Reed Economics 212 Johnny Shull March 8, 2010 International Trade Simulation and Report Concept Summary results from four team members from the International Trade simulations were evaluated. Learned from the International Trade Simulation were advantages and limitations of International Trade. Four key points were emphasized in the

Eco/212 Trade Simulation Paper

1782 words - 8 pages International Trade Simulation and Rep International Trade Simulation and Report Introduction International trade is a common denominator in today’s economy. Various countries around the world participate in importing and exporting the goods and services demanded by their citizens; requiring an abundant level of careful considerations, restrictions, limitations, and government policy. The following is an a brief discussion of the