The Shortcomings of the Current International Trade System

2285 Words5 Pages
bulb-icon

Recommended: What is the impact of international trade for developing countries

The Shortcomings of the Current International Trade System The issue of trade has been a factor in the interrelations between nations since their conception. Throughout history there have been many different structures that encompass these trade relations. In essence, the state of trade between counties coincided with, and depended upon, their economies, social structure, willingness to trade, and their available resources (tradable products and services). Today's trade system is still formulated by these factors. However, there are many more concerns and actors which must be weighed. The current international trade system is, to say the least, much more complex. In its complexity, the trade system has also inherited a very controversial nature. This controversy is focused on the true benefits of the current structure itself, which is labeled as trade liberalization. Within this paper I would like to address this controversy, and pose the argument that, The international trade system, as currently structured, does not serve to advance the interests of the North or South. Concentration will be directed toward the negative effects to the South, and secondarily on the long-term detrimental effects on the North. In order to understand the current structure fully, one must know the history. With the close of the Second World War, the world's leaders resolved to build a global economy that would be far more institutionalized and constitutionalized than the prewar model. In their initial design, the United Nations would provide the international political stability. Furthermore, economic growth among nations would be characterized by "free multilateralism," driven by such organizations as the General Agreement on ... ... middle of paper ... ...ited Nations Conference on Trade and Development, Publications. Shafaeddin, Mehdi. Free Trade or Fair Trade? No. 153 : 2000. 5. Ibid. pg. 2 6. Ibid. pg. 3 7. Ibid. 8. The World Bank. World Development Indicators. pg. 311-333 Washington: 2000. 9. Evernett, Simon. "The World Trading System: the Road Ahead." Finance & Development v.36 no.4 (1999): 22-5. 10. World Bank pg. 311 11. Smith, Jackie; Moran, Timothy. "WTO 101: myths about the World Trade Organization." Dissent v.47 no.2 (2000): 66-70. 12. UNCTAD pg. 21 13. Islam, Shada. "East-West divide. Seattle WTO meeting to discuss child labor and other issues." Far Eastern Economic Review v.162 no.48 (1999). 14. UNCTAD pg. 22 15. Ibid. pg. 29 16. Legrain, Philippe. "Not an Ogre, but a Friend to the Poor." New Statesman v.128 no.4438 (1996): 17 17. Smith; Moran pg. 66 18. Ibid. pg. 68

Show More
Related

  • Understanding International Trade: Costs, Benefits, and Agreements

    715 Words  | 2 Pages

    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

    Read More

  • The Canada-U.S. Trade and Economic Relationship

    1583 Words  | 4 Pages

    Trade, of course, is only part of a larger network of relationships between our two countries. This network evolves in response to many complex influences, and exporters need to consider how our two countries' ever-expanding, ever-changing relationships will affect their activities. To take just a few examples:

    Read More

  • The Three Empires

    952 Words  | 2 Pages

    Bentley, J., & Ziegler, H. (2008). Trade and encounters a global perspective on the past. (4th ed., Vol. 1, pp. 182-401). New York: McGraw-Hill.

    Read More

  • United States Trade Policy: Current and Future Role in a Global Economy

    2527 Words  | 6 Pages

    The United States has for over two centuries been involved in the growing world economy. While the U.S. post revolutionary war sought to protect itself from outside influences has since the great depression and world war two looked to break trade restrictions. The United States role in the global economy has grown throughout the 20th century and as a result of several historical events has adopted positions of both benefactor and dependent. The United States trade policy has over time shifted from isolationist protectionism to a commitment to establishing world-wide free trade. Free trade enterprise has developed and grown through organizations such as the WTO and NAFTA. The U.S. in order to obtain its free trade desires has implemented a number of policies that can be examined for both their benefits and flaws. Several trade policies exist as options to the United States, among these fair trade and free trade policies dominate the world economic market. In order to achieve economic growth the United States has a duty to maintain a global trade policy that benefits both domestic workers and industry. While free trade gives opportunities to large industries and wealthy corporate investors the American worker suffers job instability and lower wages. However fair trade policies that protect America’s workers do not help foster wide economic growth. The United States must then engage in economic trade policies that both protect the United States founding principles and secure for tomorrow greater economic stability.

    Read More

  • Essay On Canada Globalization

    1423 Words  | 3 Pages

    The trading has been conventional between the countries since several thousand years ago, however, the people were not enlightened regarding the distinct cultures and backgrounds. The

    Read More

  • The League Of Nations: Analysis Of The United Nations

    2149 Words  | 5 Pages

    Final Paper - Analysis of the United Nations Of the many non-profit institutions, the United Nations is possibly the most prevalent and influential. The United Nations is an authority, extending influence over numerous countries, as well as garnering power and support from them. It began as a replacement, just after the end of the Second World War on the 24th of October, for the League of Nations. This ineffective organization’s flaws were due to it’s leadership by two of Europe’s most destroyed countries- France and England. These two diminished powers were unable to deploy their massacred armies or create trade restrictions.they instead relied on moral condemnation, which could mostly go ignored.

    Read More

  • WTO Protest:Is Violence Justified?

    2360 Words  | 5 Pages

    The Opponents-Description – “The World Trade Organization was founded in 1994 as the successor to GATT (General Agreement on Trade and Tariffs), an obscure, Geneva-based organization that had been charged since the end of World War II with gradually reducing international tariffs. The original WTO treaty was seven years in the making and 22,000 pages long. The WTO’s stated mission is to referee the global economy, to provide a “level playing field” for all compet...

    Read More

  • Regional Trade Agreements vs. Global Trade Liberalization

    1193 Words  | 3 Pages

    There is much debate concerning regional trade agreements and global trade liberalization. Pros and cons can be found for each trade policy. After looking at several arguments for and against regional trade agreements, it seems that overall regional trade agreements are more beneficial when compared to global trade liberalization.

    Read More

  • International Trade Labor and Environmental Regulations

    994 Words  | 2 Pages

    3. Dijck P. van, and Faber, G. (eds.), Challenges to the new World Trade Organization, 299-306 1996 Kluwer Law International

    Read More

  • The Political Economy in International Trade

    802 Words  | 2 Pages

    The Political Economy in International trade focuses on understanding the many causes of economic growth in developing and transition economies, the different role of international trade in increasing economic welfare around the globe, and the many different impacts of the international financial system on the global economy. As we take a look at the United States and Poland different economic systems and understand how these two countries are effected by the political economy in international trade, we will become familiar with how both are able to become skilled at improving their economic conditions in the globalized world economy. One of the most important objectives for both economies is to increase economic development and also to enhance the international economies of both countries in international trade system. As we look closely at the fundamental aspects of the international trade key point (Increasing market size, having an insurance motive, protectionism, and increasing bargaining power) we will begin to understand what makes and breaks countries in the political economic in international trading between large and small nations.

    Read More

  • Comparative Disadvantages: Hyperglobalization And Comparative Advantage

    559 Words  | 2 Pages

    The article examines some of the influential theories in the domain of international trade including hyperglobalisation and comparative advantage. The publisher was keen to demonstrate how the theories need to be embraced since hyperglobalisation promotes investments flows from partners pursuing such trading agreements. The trading partners can still reduce their operation cost such as transportation while still navigating the complexities of hyperglobalisation. The author also endeavored to demystify the terminology of comparative advantage by issuing examples and previous concerns reported on the subject. It has been hailed that the traders often traded as per their factor endowments by concentrating on spheres of their specialty. The author also hinted to the readers that the theory of comparative advantage is a major concept since it is the first theory that economics students are briefed on. Arguments in support of the theory reveals that countries that have this level of visibility stand to benefit massively once they specialize in areas of their specialty. He purp...

    Read More

  • United Nations

    747 Words  | 2 Pages

    3.     The UN structure is a very well thought-out one. The UN contains over 150 countries, with 5 main heads of state. These 5 countries are America, France, Great Britain, Russia and China. The 5 head countries always make the decision on whether to help a country that is in need or not. The basic structure is that there is a general assembly, which is the head of the UN. Off that there are 5 separately run systems, which are International court of justice, Economic and social council, Security Council, secretariat and the trainee council. All have different, yet major roles in striving to make the UN a success.

    Read More

  • Impacts of WTO on Trading Countries

    1293 Words  | 3 Pages

    International trading has had its delays and road blocks, which has created a number of problems for countries around the world. Countries, fighting with one another to get the better deal, create tariffs and taxes to maximize their profit. This fighting leads to bad relationships with competing countries, and the little producing countries get the short end of this stick. Regulations and organizations have been established to help everyone get the best deal, such as the World Trade Organization (WTO), but not everyone wants help, especially from an organization that seems to help only the big countries and those they want to trade with. This paper will be discussing international trading with emphasis on national sovereignty, the World Trade Organization, and how the WTO impacts trading countries.

    Read More

  • Advantages And Disadvantages Of The World Trade Organization

    1240 Words  | 3 Pages

    For thousands of years, humans traded with each other, and for the majority of those years, trade was unregulated. In 1947, however, following the 1930s trade wars that eventually led to the rise of Hitler and the outbreak of WW2, the General Agreement on Tariffs and Trade was established to “[substantially reduce] tariffs and other trade barriers and the [eliminate] preferences, on a reciprocal and mutually advantageous basis”. [2] Then, in 1995, the World Trade Organization replaced the GATT. Though many criticize the international organization, for its slowness to act, [3] for example, overall, the WTO is a (small) positive force for development. First, I explore some advantages and disadvantages of the WTO on a theoretical level. I then analyse the effects of the WTO in the real world, including its dispute settlement procedures, free trade, and TRIPS agreement. Finally, I weigh the benefits and detriments the organization brings, and conclude.

    Read More

  • Globalization and International Commerce

    1632 Words  | 4 Pages

    Sidwell, M.,2008. Unfair Trade. [online]. London: Adam Smith Institute. Available at [Accessed 17th Feb 2014].

    Read More

More about The Shortcomings of the Current International Trade System

Open Document