International Trade

900 Words Jul 11th, 2018 4 Pages
Fair Trade There is only one international organization that deals with global trade and that is The World Trade Organization (WTO). The WTO deals with the rules countries use when trading between each other. "The goal is to help producers of goods and services, exporters, and importers conduct their business" (WTO, 2011). The WTO helps with trade negotiations, implementation and monitoring, dispute settlement, building trade capacity, and outreach. The WTO is a great organization with the intent to organize fair trade between all countries. But what the WTO cannot do is make a country join. And many countries are not involved with the WTO and some need assistance and others are doing just fine on their own. Do more developed countries …show more content…
Industrial policy is more common in countries in Asia. Carbaugh used Japan as an example of industrial policy by explaining how Japan did so with some of their key industries. According to Schuman, "many analysts have made the mistake of believing Asia's ascent was crafted by its bureaucrats, when in fact, it was created by its businessmen. The future of the American economy, too, will be found in its private boardrooms, not government offices." Schuman may be onto something. There are pros and cons to every approach. The key if finding the right balance that creates a win-win situation for all involved.
Trade Problems of Developing Nations Many developing nations tend to try manufacturing as a way to become active in the international trade market. These nations offer cheap labor to companies. This cheap labor tends to give some of the population a better life and a way to provide for their families. Issues that arise in developing countries is that if the demand for commodities is low and the changes in price do not bring a change in demand, then prices can fall sharply. When prices fall, so does revenue. If companies are not making money, they may move out of the country to another area.
Import Substitution and Export-led Growth Import substitution is when industries producing goods that are normally imported are protected from foreign competition. This allows an industry to have growth and to establish themselves.
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