Foreign Trade - Its Changing Composition and Encouraging Scenario

Canada’s trade balance would have been a positive number indicating that more exports than imports were made.

From 2003-2004 to 2006-2007, annual Real Growth Rate increases from 8.4% to 9.7%. Because of the summer’s credit-market crisis, the Indian GDP Growth decrease to 9.0% from 2007 to 2008 and Indian government estimates GDP Growth for 2008-2009 is 7.1%. The decrease of GDP ascribes the global financial crisis which affects India primarily through trade and capital outflows (The World Bank, 2008:16). On trade, exports are possible to weaken and make its contribution to GDP growth may be drop sharply. However, during

Foreign trade can be defined as the import and export of goods, resources and services from nation to nation. There is a scarce amount of countries that are self sufficient, leaving most countries to rely on other nations. Foreign trade includes many agreements made by similar nations looking for a similar outcome. These types of agreements can be in the form of laws which help regulate the the trade. The amount of trade made in a country can be measured by the growth domestic product (GDP). The GDP is the absolute value of all things produced by all people and companies (CITE). There are advantages and disadvantages to the transporting of trade. Some benefits of foreign trade includes providing jobs, improving quality of life and empowering women around

There is no doubt that increasing in international trade is supporting the economic growth across the world, raising incomes and creating jobs. However, international trade can also some create economic obstacles, such as the international context and the market policy and regulations of each country, and consequently it can be said that the effects would have positive and negative sides, and it is useful to mention all of them and to take them into consideration.

The U.S main trade allies are Canada, Mexico, China, Japan, Germany, South Korea, and France combing for a total of 180 billion dollars earned. But not only do we earn money by exporting, we spend money importing the U.S spent 388 billion dollars on imported oil. “We aren't addicted to oil, but our cars are”.James Woolsey..On other products such as forest products, cars, food, and footwear we spend about 124 billion dollars from china which is the most from a country. In 2013, the total U.S. trade deficit was $476.692 billion. This is because the imports of $2.76 trillion exceed its exports of $2.28 trillion (Amadeo, Kimberly). This also shows the economy is strengthening, because of the deficit is lower than in 2012, when it was $537.6 billion. Another big cause to the trade deficit is consumer products. The largest products are drugs, consumer electronics, clothing, household goods, and furniture. Vehicle and mechanical products are another category where the U.S. ran a trade deficit in 2013. They imported $294 billion worth of cars, trucks and auto parts, while only exporting $146 billion, causing a huge deficit of $148 billion (Amadeo,

The pressure of trade imbalance and oil shock sharply increased the import bill (Pessoa, 2004).

The population of the Asia region of the world contributes a massive amount of exporting goods, and global business as a whole. The sheer number of people consuming goods that must be imported to support the large population force the need for trade with other regions. The demand for resources is high and the need to develop strong trade relations with other countries is vital to the continued growth and success of Asian countries.

For the past three decades the U.S. trade deficit with China has been growing. In 2013 U.S. trade with China was $562 billion, but resulted in a trade deficit of $319 billion. Nader states that the

In the midst of the help from the extremely advanced transportation, modern production methods, rapid industrialization and the increasing facilities of outsourcing of trade and services the international trade organization is increasing and decreasing very fast in the globe. The international trade account has a good distribute of a country’s gross on domestic product. It is in addition one of most important foundations of income designed for the developed as well as to developing country. For the reason that of many country benefits from the international trade approximately every one in the

1. In the U.S. current account, most of the trade deficit results from an excess of imported

International trade is the exchange of goods, capital, and services across international borders or territories. In most countries this trade represents a significant share of their (GDP) gross domestic product. This type of trade has political, economic, and social importance to all nations involved. There are many factors surrounding international trade, such as, advantages, limitations, foreign exchange rates, and others. As we review these factors, this will allow us to better understand how international trade truly functions.

In the recent years, business become more larger due to the advancement of technology, a renewed enthusiasm for entrepreneurship and a global sentiment that favors international trade to connect people, business and market. The economist emphasize about the international trade can increase the production of goods and service, increase the demand from the consumer in local or international, the diversification of goods and services and the stability in the supply and prices of goods and services. As a result, it becomes the main part of the international business and motivated countries to trade with borders. The United States implied the government intervention since the great depression through the financial sector rescue

The international trade of goods across the world accounts for approximately 60% of the world Gross Domestic Product (The World Bank, 2014). A great proportion of goods transactions occur every second. The primary question is whether international trade benefits a country as an entirety, and, if so, why would a country implement protective trade policies to restrict particular exports? To address this question, this essay aims to explore the impact of trade on various economic stakeholders, including consumers, producers, labour and government and, furthermore, will compare models and theories with reality to ascertain the true winner/ loser in the international trade market.

To begin with the benefits of trade liberalization, while country starts to open the country borders for foreign trade with lowering tariffs and import restrictions, basically, the gains from import and export will be rise. Moreover, with the allowance of trading for foreigners who bring with them technology, investment and production skills inside borders of the country, country will achieve to fill up the lack of production skills and increase the amount of manufacturing goods, job opportunities for community, while sometimes foreign firms will benefit only from low labor costs. In the other words, a country will start to earn from comparative advantage as sector specialization and exporting goods while making sectoral transformation due to trade liberalization continuously which is also explained with an expansion of investment on research and development. Additionally, the industrialization degree of the manufacturing will be affected positively by Foreign Direct Investment (FDI) according to the country’s sector of comparative advantage. These processes can cause to make new job opportunities, boost in income per capita, advantages for consumers. All in all, these benefits can be listed as, (Arsalan Hasan,

Since gaining liberalization, India has been active in international trade, and is today one of the major trading nations in the world. The Indian economy has been highly dependent on external trade; presently, India’s major trading partners were China, United Arab Emirates, United States, Saudi Arabia Switzerland, Singapore and Germany.