The Effect of Foreign Trade on Tthe Nigerian Economy

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.

Trade between nations of the world is extremely important in many aspects such as keeping a strong relationship between countries and to hold a good strong trust. It is through trade that

In the past few decades, there has been much controversy over the issue of America’s involvement in foreign trade. Of course, for some, there is always a strong sense of nationalism that will ignite them to only buy products that were made in America. In contrast, for other buyers, it does not matter where the product was made. They want to participate in the trade market, regardless of where it was manufactured. From the creation of jobs for American citizens to causing the increase of some produce foods that they purchase at the local grocery store, there are many aspects that result in foreign trade that is occurring globally. In order for America to have the best global trade market, trade barriers need to be completely removed to

There has been a dual view of trade since the time of the ancient Greeks. The two sides of these philosophers views are the recognition of the benefits of international exchange, but that there is concern that certain domestic industries would be harmed by foreign

The benefits that arise from international trade can be derived from nations that have acquired trade power and established their revenue. According to Stanley, “nations with strong international trade have become prosperous and have power to control the world economy. The global trade can become one of the major contributors to the reduction of poverty.” Over the years, this type of trade has thrived as a result of the numerous benefits that come from importing and exporting good and service on a global scale, more specifically because of the increasing efficiency as well as the effects of supply and

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.

Economists of all time, either classical, new classical or modern, have never denied the importance of external trade. International trade have been considered as a back bone of the economy of any country. The issue of trade and free trade has been at the prime agendas of economists' for over last two centuries. David Ricardo and Adam Smith talked about the importance of free trade, and given Comparative and Absolute Advantage theories. Free trade or globalization is a hotly debated phenomenon in the world economic system of 21st century. If the economic affluence and economic growth of all the nations of the world could be brought at par with each other by the free flow of goods and services, irrespective of boundaries, under the free trade banner, then it is a situation for which, every country should struggle for. Bilateral trading arrangements, although less preferred to multilateral ones, are one of the instruments employed by both developed and developing countries, to protect their export markets and to guarantee their trading activities in the future.

The international trade brought specialisation and labour division alongside with economic development for trading countries as noted by Adam Smith “Men are much more likely to discover easier methods when the whole attention of their mind is directed towards that single object that when it is dissipated among a great variety of things” (The Wealth of Nations, 1776).

advancements occurring, globalization is moving at a faster pace than ever before. Since the rise of the

The world is more connected than ever, whether that’s through a stream of cross border capital flows or this new wave of digital disruption. In the past globalization was confined to trade between advanced economies or resource heavy countries. This gave consumers in the U.S. and Europe the access to items made by people in developing countries for a third of the cost. Over time trade barrier were

Such tends to have the effect of increasing the ratio of the trade outcome. As a country’s growth in income rises the shift towards spending more and leaving more luxurious increases. The basic requirement and need like food, cloth and other manufacturing products which can offer importance for product differentiation, diversification and international trade.

procure imports. This trade theory has given birth to a new direction for economic policy,

In regards to trade there is a flow of innovations, investments and concepts which helps bring about growth in productivity and developments for the people and industries usage.

Trade is not an end in itself, but a means to economic growth and national development. The primary purpose is not the mere earning of foreign exchange, but the stimulation of greater economic activity.

In the globalization era nowadays, trading has become an important activity across all regions. Trading is known as an exchange of good and services from country to another country. Commonly, trading is necessary due to the limited resources are scattered unfairly between other regions and some countries are better producing products than other (Lipsey R., 1960). However, trading not solely occur to the scarce resources but also happens to other country that can specialize in similar goods and services. For instance, Malaysia and Thailand are better in producing rice but yet they do trading of rice with one another. This trade action is known as intra-industry trade. (Krugman P.,1991) stated that intra-industry trade is a two-way trade in similar goods or in other words known as an exchange of similar goods between countries in same industry.