The Rise Of International Trade

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.

With the United States currently experiencing another presidential election the world is in suspense, watching to see who will become the next leader of the free world. Such halt corresponds to the running of two presidential candidates: Hillary D. Clinton and Donald J. Trump. Such halt derives from candidates proposed trade policies for the United States and its latter ramifications. This emphasis on trade originates from this idea that we live in a globalized economy and with the United States being a predominate actor within the international community, policies, for instance, that do not support globalize trade potentially harm developing and developed countries who have ties to the U.S.. Both Hillary Clinton and Donald Trump share similarities amongst their trade agendas; for example, Clinton’s policies surrounding trade must “work” for the U.S. while Trump 's objective is to renegotiate current and future trade agreements to better suit the U.S.. Therefore, each candidate’s trade proposal must undergo an evaluation of the potential outcomes that derive from each proposal and identify which candidate 's agenda is better suited for the United States and the global aim to liberalize trade. Candidate Hillary Clinton’s trade policies, although minimal in its size, maintains relationships with allied countries and does not harm the United States in trade; while on the other hand, candidate Donald Trump’s trade policies lead to negative ramifications that

Free trade agreements are in force all over the world today. A free trade agreement is an “agreement between two or more countries where the countries agree on certain obligations that affect trade in goods and services, and protections for investors and intellectual property rights, among other topics” (www.naftanow.org, 2013). These agreements are essential for the countries if they want to trade goods and services with each other without having to be bothered with each other’s laws and regulations.

Fifteen years ago, the United States entered an agreement with its neighboring countries, Canada and Mexico, to not only increase trade productivity for itself but, allot its sister nations to the north and south the same advantages. Although the North American Free Trade Agreement (NAFTA) has come with many benefits to our nation, it has also brought in many consequences. The United States is now facing similar challenges with Asian countries through the Trans Pacific Partnership (TPP). The significance of Free Trade Agreements on our economy has sparked a movement and is now currently one of the most widely debated topics in our country.

Crucial to understanding the appeal of a multi-national economic deal is understanding the theoretical outcomes of such deals. In many cases, the most appealing feature of these institutions is their long-term benefits. Free trade’s opponents focus their criticism on the deals’ short-term consequences, such as ephemeral job loss in the state with higher labor costs. A temporary decline in employment does not outweigh the long term benefit of an economic deal such as NAFTA, which had the potential to refocus billions of dollars on goods which American industry is more efficient at producing in a process known as creative destruction. Using international relations concepts, I will explain why the formation of the North Atlantic Free Trade

The end of World War II implied a new era of Global Business; the era of open borders, globalization and therefore free trade. In the 21st century, a flourishing world economy can no longer be imagined with existing trade barriers and high quotas, advocators argue. The world economic system and our wellbeing, are highly dependent on both economic growth and globalization, which in turn are reliant on “the absence of artificial barriers to the free flow of goods and services between countries” (Dunkley 2004, p. 9). Nations ensure this mutually beneficial situation by signing preferential trade arrangements with each other. Arguably, the most common form of such arrangements are Free Trade Agreements (FTAs): when two or more

One of the major keys to having two or more parties successfully trade and invest with each other is the ability to make agreements peacefully and come to similar terms. Many times, people would like to trade goods and services, but cannot agree on the terms each other have made. This can obviously cause many problems with trading and is the reason many deals do not go through, which can impact not only the people involved, but many more people very negatively. This is why agreements are so important in today’s world, and the North American Free Trade Agreement is no exception.

Since the mid-20th century, countries have progressively reduced barriers, subsidies to domestic industries and diverse restrictions on international commerce in order to promote specialization and greater efficiency in production. In theory, free trade allows nations to focus on their main comparative advantages and profit from cooperation and voluntary trade. This strategy is usually reinforced by treaties between two or more countries where commerce of goods and services can be handled across their common borders, without tariffs and other trade obstacles. As a key component of regional integration in the Americas, CAFTA-DR is one important example of this economic ideology.

Research has directly influenced the main facets of trade agreements globally. Moreover, an amount of benefits has evolved from trading on the international level. Mainly trade agreements have been categorized on the amount of participants developing ties in a sector or an amount of sectors. A Multilateral agreement that has been identified in the following sections of the trade protectionist strategy under Trump’s administration was the Multilateral. Mainly it was mentioned

Mui continues to argue that the US could save the situation by signing bilateral deals with the individual countries involved in the TPP especially Vietnam and Japan. However, there is a need to make a swift move since China is aggressively seeking to lock in trade contracts with most of the same countries that were involved in the signing of the TPP. Trump had also vowed to renegotiate the NAFTA (North American Free Trade Agreement), which significantly vital to the economic relationship between Canada, US, and Mexico. According to Mui, Mexico’s president, Pena Nieto continues to assert that his country would be looking to diversify its political and trading partners during the Trump’s era so that it could stop relying heavily on the US government. The author continues to

The numerous trade agreements developed between different groups of countries reveal the success of developing such relationships. Countries these trade agreements have reported increased imports and

Trade agreements, apart from encouraging trade among participating countries, also promote good governance and oversight of a country’s activities. A country’s policies are often monitored to ensure that they are implemented in a way

Both of these steps focus on trade negotiations and the facilitation of free trade through the lowering of tariffs and resolution of trade disputes. (citation?) Factors leading toward or against free trade must also lead toward or against economic cooperation. Of prime importance is the public support, or lack thereof, of a state’s expansion of trade with others. Within nations, those who gain from trade expansion will favor it, while those who lose will favor protectionism. Therefore, individuals in either group form political alignments that go on to affect a state’s engagement or disengagement in economic cooperation.

International trade implies the openness of the economy. It is the antithesis of self-sufficiency economy, where a country can own efforts to cover all the needs of its citizens. Currently, the development of an open economy can be seen in many countries. The advantages of this trend are simple: international trade in general defines the standards of the world market and couples with the reduction in the cost of goods. This happens due to the increased specialization in the distribution of production, which allows to allocate resources in the most rational way and encourages competition between domestic and foreign producers, which improves the quality of products. Open trade improves the investment climate and stimulates the inflow of

International trade is focused on the exchange of goods, services and capital across national borders. According to Ball et al. (2012) international trade brings many benefits to the consumer, such as larger variety of products and services, on the other hand also benefits the country’s economy such as creation of jobs, innovation or reduction of poverty.