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Government intervention in trade
What is the importance of international trade
What is the importance of international trade
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International trade is an economic practice where countries can import and export goods with no concerns to government intervention which includes tariffs and import/export bans or limitations. International trade has several advantages on developing countries; who are nations with low levels of economic resources or low standard of living. Developing countries can advance their economy through strategic free trade agreements. Free trade generally improves the quality of life of poor nations. Nations can import goods that are not easily available within their borders; importing goods may be cheaper for than trying to produce consumer goods. Many developing nations do not have the production procedures available for translating raw materials into valuable goods.
Moreover, international trade can be more effective in reducing poverty than outright aid in which trade can help any country become self-sufficient, rather than relying on foreign assistance. However, there are, many disparities within the present global trade system that work against poor countries. That is regulated by a set of rules created by governments over the years. In general, poor countries don't have access to developed countries’ markets because of the barriers of trade and agricultural. It’s difficult for poor countries, because of trade barriers, to sell their products abroad and develop their living conditions. While free trade benefits everyone, governments sometimes aim to protect their goods and markets by providing subsidies to local rules and producers, or creating barriers like tariffs and quotas. This particular practice is known as Protectionism; which can be identified as the economic policies and procedures of controlling trade between states...
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...rvices, cause deformation in domestic economies. Some trades take advantage of trade restrictions, while others lose. Trade globalization can be beneficial to some sectors of the economy but others may be worse off, even though the nation as a whole is profited.
References:
Global Business Today, by Charles W.L. Hill
Government Intervention Affecting Agricultural Trade, Gary F. Fairchild, Professor, University of Florida, Geoffrey A. Benson, Extension Economist, North Carolina State University, Larry D. Sanders, Extension Economist, Oklahoma State University, James L. Seale, Jr, Professor, University of Florida
https://www.gov.uk/government/policies/helping-developing-countries-economies-to grow
Problems in International Business, Prague, Summer 2010, Professor Steve Ferris
The Benefits of Free Trade for Developing Countries, by Osmond Vitez, Demand Media
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"USDA ERS - U.S. Agricultural Trade." USDA ERS. N.p., 5 Mar. 2013. Web. 03 Jan. 2014. .
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