The Direction Of Bilateral Trade Flows Across Countries Or Regional Economic Blocs Essay

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.

U.S. trade patterns are an important topic of study due to America’s power and central position in the international market. This topic of US trade partners and our trading patterns with those partners has been approached from a variety of perspectives by several economists. Namely, Sattinger (1978), Srivastava and Green (1986), Summary (1989), and Pollins (1989a and 1989b). The literature draws many conclusions from American competitiveness and the political and social factors that help explain bilateral trade patterns the choice of trade partners. And while there is an abundance of literature concerning this topic there has been little done from the perspective of how America’s trade partners have developed and shifted over the last 25 years, which is what this paper will focus on achieving. International trade flows are also an important topic and have been estimated by many economists including, Tinbergen (1962), Anderson (1979), Helpman and Krugman (1985), Helpman (1987), Feenstra (2002), and Anderson and van Wincoop (2003). Each of these researchers used a variant of the gravity model to estimate trade flows which not only demonstrates the continuing empirical validity of the model but gives firm background with which to base this analysis. The basic gravity model states that the volume of trade between two countries is proportional to the size of the two economies, and various measures of trade resistance such as geographical distance between the countries,

Trading is very important economic factor. Trade between different countries depends upon different factors. There are some factors due to which bilateral trade between two states is enhanced. On contrary, there are some factors which restrict or reduce the trade between two countries (Meyer, 2011). Factors which enhance trade include different cultural, political, geographic and economic aspects which are common between the 2 countries involved in bilateral trade with each other. While trade is reduced or restricted, if two countries are completely different culturally, politically, geographically and economically (Siegel, 2011). For example, trade between two countries, having common boarder, currency, per capita income et cetera, will be lot more high than those countries which do not share these factors common with each

The module content provided by Colorado State University-Global Campus discusses regional trading agreements. It states that the tendency to use negotiation and organization of free trade had been undermined by regional trading agreements since the 1980s. Furthermore, CSU-Global argues that regional trade groups strengthen trade and the benefits of the groups involved. On the other hand, it undermines free trade by discouraging trade with members not part of the group.

“South to South” trade, meaning trade between developing countries, accounts for 40 percent of all goods flow. The expansion of trade into these new regions is by reason of technological advances and economic growth and increasing numbers of consumers.

The purpose of this assignment is to explain trade relations between countries and the importance of treaties. No nation is self-sufficient in all sectors that can meet all needs of the population and at the same time provide economic development. Types of trades between countries can be natural resources, food, energy sources, technology, wood, etc.

The European Union is considered as a political and economic institution that includes 28 countries: Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, The Netherlands, and the United Kingdom. In fact, the creation of the EU has been through the following steps:

In today's globalized economies, virtually every country in the world belongs to some form of regional integrated trade organization whether by direct membership, bilateral or multilateral agreement. Regional integration is a process by which sovereign states in a particular region enter into an agreement to promote economic growth through the reduction of barriers to trade restrictions and safeguard common interests such as the environment. The removal of trade barriers results in a free trade zone thus creating a single market. Sovereign nations have many differences, some may be more economically sound and others may have a greater labor force or better technology. In the end,

Trade blocs are inter-governmental agreements between states, regions, or countries, to reduce barriers to trade and to bring economic benefits to the participating regions members. There are several types of trading bloc depending on the levels of commitments and arrangement between the members:

In this I am going to assess the methods to increase trade between countries and the methods to restrict trade between countries. When asses the methods of encouraging and restricting trade I will talk about the purpose for the methods of promoting and restricting international trade, identify how and why they might be used and I will decide how useful each method is giving appropriate reasons for it. International trade is the exchange of goods and services between countries.

Over the course of time, there have been incorporations of multiple agreements all around the world between developing, industrialized countries and third world countries. These agreements are often depicted as a form of advancement and growth for all the parties that are involved. However, this is not always the case, as it is often common that one(some) of the parties becomes affected in a negative manner. While the other party(ies) finds ways to take advantage of the situation and profit from it. One clear example of this is the North American Free Trade Agreement which was implemented between Canada, Mexico and the United States, with the purpose of removing barriers to exchange goods and services to improve the economy. Though, the outcomes of this trade agreement have generally been the opposite of what its primary goal was. As well as the countries mentioned previously, Africa is stumbling upon a similar situation with the European Union. The EU, would like to implement the Economic Partnership Agreement in African countries. Although, the propositions offered by the EU in regards of the (EPA) seem to be valuable for Africa’s progression, it is more likely that the Economic Partnership Agreement will cause negative effects towards Africa’s economic, political and social position.

(1) Regional trading blocs, such as the EU and NAFTA, are growing in importance. What are the implications of these trading blocs for international business policies? Are they helpful or harmful to the regions? How may they affect global investments?

According to the above, we can predict the structure of trade, namely the exported and the imported commodities once we are aware of the relative abundance of factors of production and the differences in factor proportions required for the production of different goods. The model attempts to provide a more realistic approach regarding the fact that resources are imbalanced between countries. For example, there are economies that are oil-abundant (e.g. Middle-East); others have a relative abundance in agriculture (e.g. Greece) whereas in others there is a relative abundance of labour (e.g.

Africa’s share in the world market is marginal. Its percentage in a global exports market is 2.4 percent. Africa is imaginably the only continent that tends to be examined and judged as a single entity. That approach fails to do justice to great differences between countries in terms of their histories and present situations (UNCTAD 2014). The intra-African trade contribution in aggregate trade performance is the lowest compared to other regions. Intra-African trade accounted for about 10 percent of Africa’s total trade in 2009 as compared to 22 percent for Latin America and 50 percent for Asia (UNCTAD/ALDC/AFRICA/2009). The enormous opportunities for cross-border trades in Africa are massive that creates employment; unlocking the trade potential, catalyse investment and foster growth in Africa.

regarded as a special case as it deals with different partners and with regards to different