International Trade of goods
Description
International trade is exchange of capital, goods, and services across international borders or territories. In most countries, it represents a significant share of gross domestic product (GDP). While international trade has been present throughout much of history (see Silk Road, Amber Road), its economic, social, and political importance has been on the rise in recent centuries. The WTO provides a forum for negotiating agreements aimed at reducing obstacles to international trade and ensuring a level playing field for all, thus contributing to economic growth and development.The abrupt contraction of trade flows due to the 2008 financial crisis and the belief that the more open economies are bearing the brunt of this decline have led some commentators to argue that trade liberalization has made open economies more vulnerable to the crisis. Because of the continuing downside risks, the WTO Secretariat has a forecast of world merchandise trade in 2009 of a decline of 10 per cent. The World Trade Organization (WTO) deals with the rules of trade between nations at a global or near-global level. But there is more to it than that.
Enablers:
- The Rise of BRIC Economies
- Economies of scale
- Influence of the World Trade Organization
- The increasing globalization of markets
- cost of shipping
Inhibitors:
- The oil price
- The financial crisis
- increased national protectiveness
- The Anti globalization movement
Paradigms:
International trade is a major source of economic revenue for any nation that is considered a world power. Trade restrictions have been seen as prohibiting developing countries from a fair share in the world market. Due to economies of scale sending goods all over the world has become cheaper and cheaper, while on the other hand this global stream of goods negatively impacts the environment. With rising oil prices it remains to be seen whether transportation of goods will remain as cheap as it was.
Experts:
- Economists
- Environmentalist