Essay On International Trade

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International trade is an activity that deals with the exchange of services and goods between countries. This has been the reason why we have the concept of a world economy where prices, or supply and demand are affected by global activities (What is International Trade? 2012). International trade allows one country to enjoy the services and products of other countries especially those that are not readily available for that particular country. This is also the reason why we have so many products to choose in the domestic market that bear the labels of names of other countries. Most of the products like food, clothes, spare parts, oil, jewelry, stocks and many more are the result of international trading. On the part of services, they are traded too like in area of tourism, banking, consultation and transportation. International trade involves two activities: export and import. Export is a product that is sold in the global market and import is the product that is bought from the local market. The country of Kuwait began contracting parties with the rest of the world when it signed the General Agreement on Tariffs and Trade (GATT) in 1994. This signal for the country to participate in the import and export and this agreement was strengthen when the country became a member of the World Trade Organization (WTO) in April of 1996. When Kuwait became part of these two giant trading organizations, it started its commitment to international trade and its obligation to fulfill under the multilateral trade policy. Today, Kuwait positioned itself as an open economy, meaning it welcomes international trade and competition as part of its economic development. This report will detail the international trade activities in Kuwai... ... middle of paper ... ...s happening at present with Kuwait economic growth due to the solid contribution of the country international trading activities, McGehee (2013) said that there is a bright economic outlook that looms ahead of Kuwait for the year 2014. Economic growth outlook for Kuwait by year 2014 will be the highest in the GCC that is in line with the resilient growth forecasted across the region. IMF estimated Kuwait GDP to expand by 4.5 per cent by 2014. It is the writer’s opinion that perhaps this high estimate GDP increase is the result of the country near record-high own oil production. The high hike of oil price is timely for the country recovery from losses from its non-oil sector as the results of the 2009 economic recession. Also, the recovery was boosted by the country strong private and public investment on infrastructure projects and the increase of the country FDIs.

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