Advantages & Disadvantages of International Trade

On January 23, 2017, Trump fulfilled his campaign promise by pulling America out of the Trans-Pacific Partnership, which is a free trade agreement between the US and 11 other Pacific Rim states reached under the Obama administration. Trump stated that he did a "great thing for the American worker." (Bradner) When Trump was on the presidential campaign trail, 54% of Americans answered “much more likely” or “somewhat more likely” to the question "would you be more likely or less likely to vote for a candidate for President who promises to put a stop to the Trans-Pacific Partnership, and enact trade policies that put U.S. jobs first" in the Caddell & Associates poll conducted from February to March 2016. (Ballotpedia) Nevertheless, in the

Nike currently enjoys a 47% market share of the domestic footwear industry, with sales of $3.77 billion (Van Dusen). Nike has been manufacturing throughout the Asian region for over twenty-five years, and there are over 500,000 people today directly engaged in the production of their products (Van Dusen). They utilize an outsourcing strategy, using only subcontractors throughout the globe. Their majority of their output today is produced in factories in China, Indonesia, and Vietnam, but they also have factories in Italy, the Philippines, Taiwan, and South Korea (Van Dusen). In the1990’s, Nike was investigated for underpaying worker in Indonesia, child labor in Cambodia and Pakistan, and poor working conditions in China and Vietnam. They later faced further allegations of wage law violations, excessive overtime, physical abuse, and unsafe working conditions which surfaced from its suppliers and in 1992 (Ruiz 1). Nike responded to its sweatshop labor image by developing its Code of Conduct and labor practices in the company’s Safety, Health, Attitudes of Management, People Investment and Environment program. Nike’s suppliers were obligated to comply with the basic labor, environmental and health and safety standards. Nike’s suppliers were required to observe, sign and post within their factories this Code of Conduct. Ever

Few can contend that the world is more interconnected and interrelated more than ever. This web of interdependency is primarily made possible by trade, and in the twenty-first century, a large and significant portion of trade is conducted on a global scale. Furthermore, while the majority of people agree that free trade can benefit both parties in terms of economic development and an increase in overall production, many critics have voiced their fears of the negative consequences that may result from a global trade environment with few barriers or limits. Proponents of free trade argue that benefits far outweigh costs and that the primary gain is efficiency of production achieved through comparative

Trade protectionism is basically a rules and regulations of a government to maintain or to constitute a limitation on the import of commodities and services to protect or promote domestic product and also to create new businesses. Basically, protectionism is the economic policy of government to preserve our domestic product and industry by imposing duties on restrictive quotas, imported goods, and also a mixture of other government regulations to prevent foreign product from taking over of domestic markets. Trade protectionism is used by countries when they believe their industries are being damaged by unfair competition from foreign industries (Kimberly, 2014).

Culture is very important in every society and its understanding is crucial for business decisions. This is why Geert Hofstede

Culture is fundamentally about daily life. What we do in a society day to day

According to investopedia.com the definition for global free trade is. “The unrestricted purchase and sale of goods and services between countries without the imposition of constraints such as tariffs, duties and quotas. Free trade is a win-win proposition because it enables nations to focus on their core competitive advantage(s), thereby maximizing economic output and fostering income growth for their citizens.”

Globalization 1.0: It shrank the world from large to medium. The forces were a power of the country and its deployment and the duration was Columbus era to 1800.

Although free trade has theoretically never been in full practice, it has become, by definition, to provide for unrestricted trade between countries with the presence of tariffs to solely bring about revenue to the government (Eaton 1913, 78). With the installment of free trade, a country is pushed to maximize production (Eaton 1913, 78). Its industries can center their resources and efforts on those products with the least expense, or opportunity cost, and resultantly sell or barter the goods to another country (Eaton 1913, 78)

International trade is not only a way for a country to receive merchandise, but it can also have an impact on the economy. This is very important when it comes to acquiring materials to produce final products. With this, a key factor is companies are able to expand to more consum-ers and open new markets. Additionally, if they are to import raw materials there is the potential that they can produce more advanced products that will benefit others. The amount of careers created will help others buy merchandise and even develop new technology. In the end, coun-tries are able to move up in the economic structure due to trading. First, it should be determined what is required to be considered international trade.

create needs for land for purposes other than the production of food. Among these are urbanization and transportation. Each of these sectors claims cropland in almost every country.      

International trade is very important in this era for every international company, trade (export/import) in capital, goods and services between countries.

Here, “culture” is conceived to be “cultural activities” in broad sense. Activities incorporated within culture are those dealing with production, dissemination and trading and for education. Cultural goods and services are in following domains:

There are different ways in which companies can expand their activities to gain some sort of competitive advantage. Internationalization is understood as the process of incremental involvement in a country different from the one where business usually happens. The reasons for companies to seek international expansion vary (Morschett 2007):

Nike, Inc., at the time these situations and concerns were brought up, didn’t ' put much effort on the patter, stating that these factories were independently owned and they had no idea of that or of manufacturing.