Trade Distribution amoung Nations

As one determinant of GDP is exports, it is relevant to discuss the matter with relevance to the UK and Germany. As mention in the literature review, during 1955-1960 exports in Germany

Russia has built a strong, but stagnating economy on several natural resources to include the refinery and export of natural gas and oil. According to the Jim Picht (2014) exportation of natural gas and oil to Eastern Europe account for 70 percent of Russia’s exports and 53 percent of the government’s revenue. Along with exporting oil to Eastern Europe, Russia also exports too many countries to include China and Belarus. Europe fueled majority by Russian supplied natural gas and oil, the dependency of Europe’s need for this natural resource is the reason Russia’s economy is so strong. In 2014, when Russia decided to invade the neighboring country of Ukraine has led Europe to begin searching for other suppliers of their natural resources. If Europe finds other countries to supply the natural resources

We live in a globalized economic world. Even though specific separate economies maybe separate from one another, most of them interconnect through trade. How does each economic region decide what to export as trade and what to import? Each economic region normally cannot produce everything it needs by itself and do it in a way that is economically viable. This mean that they need to decide what goods and services they are good at or are the most economically viable. This specialization in a certain amount of goods and services is based on the absolute and comparative advantages. Based on these different advantages, regions will choose which products to specialize in and produce additional amount to use for export or trade.

Between Hayek, Friedman, Keynes, and Smith, Smith has likely had the greatest positive impact on the U.S. free enterprise system. Although some point out that he did not include many original ideas, his book, Wealth of Nations, compiled many ideas into one cohesive work, and it popularized the specialization of labor- the natural movement of markets into efficiency by drawing on the self-interests of producers, rather than depending on their goodwill as might communism or socialism-as well as promoting free-trade between nations by arguing that both sides would benefit from that kind of trade. This argumentation in favor of free-trade led to its wide-spread adaptation around the world, making the modern integration of far-reaching markets

Germany has a great history of free trade, for the past two centuries they have entered into two big free trade arrangements; they were very different in nature and had totally different outcomes. The first one united Germany as a country and the second one became the EU. In the beginning of the 19th century Germany consisted of a lot of self-governing states, which were “politically and economically weak,” but retained their independence (Jakobsh). They had developed their own traditions and cultural identity (Jakobsh). Germany as a country emerged when Prussia in the north had become the largest and most efficient state both economically and militarily. In 1819 Germany made their first free trade agreement and the first proposal for a

J-Trading is a US-based company that has 350 employees which are spread out across five trading divisions between East and North America. Fifty percent of the employees are Japanese which originally came from JICO but now on a 2 – 5 – year international assignment in the United States. Within the company, J-Trading have two very distinct culture, the Japanese culture and the local culture. After the dot com crash, followed by the 9/11/2001, J-Trading’s revenues were affected badly which forced J-Trading to cut down on work force and expenses J-Trading spends on.

Zooming in on the Economic Developments in the European UnionIn the globalizing world, it is but logical that most trade groups contain countries in the same area of the world to offer trade agreements to obtain mutual benefits. Neighboring countries tend to ally for several reasons:•The distances that goods need to travel between such countries is short.

Trade imbalances. Appendix Table 2 shows that from 1999 to 2007, German unit labor costs fell by five percent, while these costs rose by 20 percent in Greece, 41 percent in Ireland, 19 percent in Italy, 22 percent in Portugal and 28 percent in Spain. These competitiveness gaps offered Germany a huge advantage in the trade, making it a better public

In reality, cities, regions and countries may have different production arrangements but similar production technologies (Krugman 1991a). Post-Fordist countries predominantly trade goods of a similar product type, i.e.

As intended in the Global Europe strategy, the EU attempted to widen its trade market to East Asian economies. South Korea was the first for the EU to start that aim. Generally, tariffs on over ninety percent of goods are expected to be removed within 3 years and a total elimination of tariffs within 7 years for South Korea and within 5 years for the EU (Hwang and Kim, 2014). According to an econometric estimation, the most beneficial sector from the FTA should be the service sector, which could be liberalised up to seventy percent of the total (Copenhagen Economics and Francois, 2006). The level of the developments of agricultural trades between the two sectors was stationary as there is a large gap of surplus; the EU exported 1.39

The regulatory framework is highly conducive to formation and operation of business, with no requirement of minimum capital to start a company. The average cost for obtaining necessary licenses has been cut almost to half. Flexible labor regulations enhance employment and growth in productivity. There has been modest inflation, but the government controls all prices of health care services virtually through its mandatory “single player” nationalized program.

Countries through out the world import and export. You import because other countries have comparative advantages over natural resources and in some cases have more human resources since the labor is cheaper. It is produced abroad and will be imported to the United States. You export when it is cheaper to produce the goods or service in your country. This includes having access to human capital, natural resources and human resources. The United States is known for producing aircraft, spacecraft and etc. It is in demand because it produces the merchandise at a lower cost compared to other countries. Export produced in the domestic country and exports abroad.

For dynamic panel data model, it is used to eliminate deviation which leads to the inaccurate result of the research (Anderson & Cheng, 1982). In addition, several factors are considered in the models, including the time effect, distance between units, common language, common land boarders, trade policy, the level of domestic product and trade policies (Lira, Lee and Lee, 2012). According to the results of the research, Lira, Lee and Lee (2012) concluded that there is less insignificant difference in benefits of participating in FTAs between rich and poor countries and signatory members can benefit significantly from joining FTAs, increase of trade flows from 200% to 220% using the most reliable estimation techniques. It can be clearly seen that FTAs guarantee the economical fairness among the members, while the members benefit economic interest. However, critics asserted that FTAs cannot maintain fairness among members because of the trade asymmetry. For instance, through establishing the dynamic panel data model and analyzing the Europe Agreement (EA), Caporale, et al. (2012) believed that FTA causes an increase in trade deficits for member and trade asymmetry because of the existence of economic and technological gaps between members. According to the statistics, it can be seen that FTAs of Central and Eastern European countries (CEEC-4) deteriorated the trade balance by over 0.12% of GDP (Caporale, et al., 2012). In other words, as the difference of economic

Contrary to this, Germany shows a strong tendency for outward trade flows of both merchandise trade as well as services in the breadth dimension. In this context, Germany’s focus on manufacturing becomes evident with reference to higher scores obtained for both inward and outward merchandise trade than for its equivalents in services. Overall, Germany displays an example of rising depth in its global exchange with other economies whilst continuing to sharpen its global profile as expressed in an increasing score in the breadth dimension.

Processes of cooperation and integration between countries are very important in the modern world. At the present time, a profound influence and an interrelation between countries is noticeable. The result of these processes in the future should be a fully free transmission of goods, services and subjects of intellectual property, capitals and human resources. At the same time, there is still a big gap in the level of economic development of countries in the world. This imbalance creates a collision between two different policies of world trade. Some countries provide liberalisation of international trade, other countries advocate protectionism to support a domestic market by using barriers and restraints on trade. One manifestation of