International trade plays crucial role in the development of any country. And Trade facilitation can be define as a procedure to make international trade possible in a best and efficient way. In which transaction cost of trade is minimum and goods transfer from one country to other in shortest time. According to WTO, “Trade facilitation is defined as a procedure and controls for the movement of the good from one country to another can be reduce cost and burden. And also find the efficient flow of goods”. According to Kommerskollegium (2008), Trade Facilitation can be define as “a reduction in trade complexities and cost of trade transaction process and insuring that all these activities take place in an efficient, transparent and predictable manner”. According to Kommerskollegium (2008), International Trade is a key driver of economic growth. Trade facilitation reduces compliance cost, enhance government controls and capabilities and it is not achievable without Political determination and international efforts. The author also explains Trade Facilitation as “a mixture of Harmonisation of applicable rules and regulation, standardization of information and requirements, simplification of administrative and commercial formalities, procedure and documents and transparency of the whole process”. It can be done by government regulation and controls, business efficiency, improved transportation, advancement of the information and communication technologies, and efficient and easy payment procedure. Custom play a central role but all border agencies should also involve in this procedure in an effective manners. It’s also an argument in support of trade facilitation that why developed nation are focusing on trade facilitation. If we go ... ... middle of paper ... .... According to OECD (2005), World Bank estimated average time required for custom clearance through sea cargo in Africa is 10.1 days and only 2.1 days in OECD which shows the difference between trade efficiency of Africa and trade efficiency of OECD. According to OECD (2005), custom clearance time can be reduced by increasing the cooperation among the international border agencies and custom authorities of trading countries. ADB (2003) refers to indicate that Bangladesh could earn 30 percent more in results of its exports if port inefficiencies are removed OECD (2005). According to World Bank (2004a), if Procedure of Custom clearance improves in Ethiopia then average productivity level of the firms in Ethiopia will increase by 18 percent (OECD 2005). Furthermore, In Nigeria cost of import is as high as 45 percent due to inefficient custom clearance procedure.
Trade is the most common form of transferring ownership of a product. The concepts are very simple, I give you something (a good or service) and you give me something (a good or service) in return, everyone is happy. However, trade is not limited to two individuals. There are trades that happen outside national borders and we refer to that as international trading. Before a country does international trading, they do research to understand the opportunity costs and marginal costs of their production versus another countries production. Doing this we can increase profit, decrease costs and improve overall trade efficiency. Currently, there are negotiations going on between 11 countries about making a trade agreement called the Trans-Pacific
During the postclassical period, the expansion of trade had different interpretations around the world. Varying societies all reacted to trade in different ways due to how they viewed the situation. It had caused conflict in few areas around the world and also created peace as well as harm. Some communities had pros and cons to trade, like everything else. Some reasons for the positive or negative feedback on trade was due to religion, and or the philosophical system. Religion and the philosophical system was both pros or cons for trade in different civilizations. Religion helped with the spread of different ideas and religions across a mass area. Yet it had a negative input because then people fought, thinking their religion was more
The first leg of this trade was merchants from Europe bringing refined goods to Africa to trade for slaves. The merchants traded with chiefs and high authority leaders. The chiefs pretty much could and would trade whomever they
We as a world together have been through a lot of changes and made a lot of advances over the past couple of centuries. Many have argued about the outcome of the European expansion on the Americas. Some people feel that the Europeans had both a positive and negative impact on the expansion; however, the negative impact gave a devastating result, which would continue to change history for almost four hundred years. The Europeans were manipulative towards to indigenous people of the Americas. They exploited them, using them as their personal slaves. Most importantly, they silently murdered the Natives by introducing them to diseases such as the measles and smallpox. Consequently, a small pox epidemic was caused, which resulted in the deaths of at least ten million Natives. This exploitation and the introduction of these diseases to these people was done through the “triangular trade”.
Increase in GDP can help the company to grow more because this may project a nation
International trade has become one of the most important things to do for the economy of a country. There are two ways to do the agreement, bilateral trade and multilateral trade. The first one, bilateral trade is the trade happens between two people, groups or countries. The trade can be in political, economic, or military matters. On the other hand, multilateral trade is a free trade between two or more countries at the same time. This trade aim to promote, enhance, and regulate trade in equal manner.
In order for a country to run well, it is crucial to provide the goods and services that its citizens need and want. Some countries are able to produce many different goods efficiently while others struggle. This could be because economic resources vary by country, not all nations are experts in the same technologies, and some consumers prefer different quality in the goods that they purchase. For these reasons, it is beneficial for nations to trade. However, there are several protection measures that are necessary for nations to take while engaging in trade, including tariffs, import quotas, and other trade barriers.
This report will review the main trade finance methods and how they affect function legally and practically. The main document used in world trade is the letter of credit and this will reviewed in dept together with the doctrine of strict compliance and autonomy.
Free trade can be defined as the free access of the market by individuals without any restriction or any trade barriers that can obstruct the trade process such as taxes, tariffs and import quotas. Free trade in its own way unites and brings people together. Most individuals love the concept of free trade because it gives them the ability to move freely and interact in the market. The whole idea of free trade is that it lowers the price for goods and services by promoting competition. Domestic producers will no longer be able to rely on government law and other forms of assistance, including quotas which essentially force citizens to buy from them. The producers will have to enter the market and strive into to obtain profit.
The new trade theory began to emerge in the 1970s when a number of economists pointed out that the ability of firms to attain economies of scale might have important implications for international trade (Wickramasekera, Cronk & Hill 2013). This theory is based on two major concepts that are economies of scale and first-mover advantage. To elaborate:
This article is credible because it has been studied by exports who did their research
OECD (2005) The Costs and Benefits of Trade Facilitation, Policy Brief by the Public Affairs Division, Public Affairs and Communications Directorate.
Trade liberalization is the practice of eliminating trade barriers or restrictions to allow for the free exchange between nations. Proponents of trade liberalization believe that it will lead to lower consumer costs, increased efficiency, foster economic growth, and further innovation of new technology. The WTO (World Trade Organization), is an international organization whose main focus in liberalizing trade. The WTO does not however, have tunnel vision when it comes to liberalizing trade, it also supports the maintenance of some trade barriers in circumstances to protect consumers and prevent the spread of disease throughout the nations.
The international community have highlighted the benefits that efficient and effective trade in Africa could potentially hold; the G8 in 2005 (and again in...
There are many reasons for which governments decide to interfere in the trade of goods and services. Those reasons can be economic, cultural or political. They often choose to involve themselves because the society’s economy is performing worse than expected. There are ways governments can intervene to help their nation such as inflicting different trade barriers, the common ones being tariffs and quotas.