Trading: Global Level

The National Agro-Food policy has incorporated strategies that are in line with the nutritional aspects of the food system. The programs implemented under the policy include increased food production through optimization and sustainable land, development and upgrading agriculture infrastructure and increase the quality and safety of food by expanding the compliance of standard. Efforts have also been taken to strengthen human capital and to ensure sufficient skill labor force in the agricultural sector. This includes the use of modern technology and mechanization to reduce the dependency of manpower. The government also provides sector-based incentives to encourage the private sector to invest in the agriculture and agro-based industry.

A satisfactory understanding of economic growth also requires an appreciation of how countries interact with each other, because countries income levels are interdependent. Trade policies help foster these interactions between countries (and businesses). The question of how trade policies affect economic growth and development has become a controversial topic.

DQ 1: Summarize the most important benefits and risks associated with diversification into global markets.

In light of this, I would like to explore research frontiers in the area of the challenges of managing food and farm businesses in a global setting of the 21st Century. In our society beleaguered by agricultural problems that ranges from economic to environmental problems such as weather and global warming, issues concerning trade and management of agricultural enterprises has been the topic of debate for the past decade. Many developing/poor countries who earn their living from agriculture continuously suffer from poverty and hunger as a result of the increasing pressures on the world's resource base. Policymakers are gripped with finding solutions to problems such as structural and technological constraints, inappropriate domestic policies and an unfavourable external economic environment. As a result, the growth of these economies has been slow, undernourishment has been increasing and the marginalization of these countries in the global economy has continued. This trend has created problems for developing countries over the past decade. Economic and financial

Free trade has long be seen by economists as being essential in promoting effective use of natural resources, employment, reduction of poverty and diversity of products for consumers. But the concept of free trade has had many barriers to over come. Including government practices by developed countries, under public and corporate pressures, to protect domestic firms from cheap foreign products. But as history has shown us time and time again is that protectionist measures imposed by governments has almost always had negative effects on the local and world economies. These protectionist measures also hurt developing countries trying to inter into the international trade markets.

EU is an important economic group in the world. And now EU is the second biggest agribusiness partner to New Zealand in the world. EU has sufficient natural resource and has created a big number of agribusiness employments. Also, EU has compared better agriculture supply chain which providing verity agribusiness production to domestic and international markets. In addition, it is necessary to notice there is a huge market which could be an opportunity to export. As a unit, EU successfully supports their local farmers and development of agriculture. However, it still gets some issues which challenge their agriculture in future.

On September 23, 2017 Naomi and I waited outside of Coffman Memorial Union to board bus 122, transferred to bus 22, and then 21 before arriving to our destination: Midtown Global Market Exchange. This cutting-edge building is located on East Lake St., Minneapolis. Before entering the building, I noticed how this farmer’s market was inside of a building instead of outside, and it appeared that the Global Market Exchange portrayed a more high-quality grocery store instead of a typical farmer’s market such as, Mill’s City. However, once I entered the building I immediately discovered how the colorful energy created a vibe of diversity to welcome its customers. With the vendors facing each other, and every product laying out on neat displays it wasn’t difficult to notice how much small details like hooks hanging from the pens of the vendors presented products like, multi-colored African clothing or hand-sewn Hmong purses made locally in Minnesota. Nonetheless, I enjoyed how surprising the Global Market Exchange is definitely catering to every ethnicity, and cultures by providing varying products for all customers from different backgrounds.

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.

The World Trade Organization (WTO) was formally made in January of 1995 by the majority of world’s trading nations, supplementing the General Agreement on Tariffs and Trade (GATT). The World Trade Organization is the unique global organization that copes with the global regulations of trade between nations. It is a consultation for governments to negotiate trade contracts and a place for them to settle trade disputes. However, in the speech in 2001, Barry Coates emphasized that “The World Trade Organization has become a driving force behind the institution of globalization and has had potentially adverse effects on the world”. (2001) This essay will argue the following negatively three impacts of The World Trade Organization which is the ignoring the plight of the developing world, and the developed countries try to control the World Trade Organization as well as the harm to the environment.

Stiglitz, a recipient of the Nobel Prize in Economics, and Andrew Charlton, a fellow economist, propose a new, radical solution to world trade problems – a solution that brings equilibrium to the trading relationships between the poorest and richest countries. The book contains an in-depth, college level understanding of fair trade and its theoretical applications on third world countries. With regards to theoretical applications, the book elaborates on the proposal, which is fair trade, and how it can initiate development in a country. Besides providing a holistic and substantive perspective on fair trade, the book also expounds on the effects of globalization on world trade and the development of third world countries. The book is useful to the study, as it will provide a clearer and better understanding of fair trade and support the arguments in the study. The main limitation of the study is that the book covers a wide area – fair trade, world trade, and third world countries, without going in-depth to labor rights abuse.

The Common Agricultural Policy (CAP), is the most complex example of common policy in the European Union. Introduced from 1958 to 1968 and still in existence today, it has brought controversy, dispute and political tension within the EU and with the rest of the world. It is also a remarkable example of the movement toward the unknown realm of integration in Europe. However, subsequent reforms have been slow in arrival and have not always achieved the success expected of them. With the new difficulty of enlargement, challenges will require yet more reform of the CAP. The changing situations and context of the policy will be considered in terms of its effectiveness, as will the reforms of

When considering the challenges and opportunities posed by EU non market policies, we must look at both the food producer and the manufacturer as both can have positive and negative reactions. Going forward, global warming is now high on the agenda of policy makers. With agriculture a high contributor, it is unsurprising that measures are being introduced that have effect on the producers’ and manufacturers’. The buzz word now associated with the future of the environment and the food industry is “sustainability”. This refers to sustainable growth as the producers (farmers) try to maximise output. Moreover, with world populations set to dramatically increase up to 2050, the EU and the world must find ways to promote food production. Therefore, policies are now becoming more difficult and multifunctional. This is symbolised through the increasing awareness of the environment and it becoming more and more apparent in the Common Agricultural Policy (CAP). “The industry realises the need to protect and, where possible, improve biodiversity. Given that the industry’s raw materials are grown in the natural environment, and the industry purchases and processes 70% of EU agricultural production, it is essential that agricultural practices are sustainable.” FoodDrink Europe. (2011). It is here in the CAP that I have found non-market policies to have impacted both positively and, at times, negatively on the food producers and manufacturers operating in the EU. The

The international trade of goods across the world accounts for approximately 60% of the world Gross Domestic Product (The World Bank, 2014). A great proportion of goods transactions occur every second. The primary question is whether international trade benefits a country as an entirety, and, if so, why would a country implement protective trade policies to restrict particular exports? To address this question, this essay aims to explore the impact of trade on various economic stakeholders, including consumers, producers, labour and government and, furthermore, will compare models and theories with reality to ascertain the true winner/ loser in the international trade market.

This report concerns the workings of the Common Agricultural Policy (CAP) and how and why it was implemented in the European Union. I will explain how the CAP operates, including mechanisms and subsidies. I will be explaining and evaluating how the two CAP reforms have been carried out and if they have been successful or not.

Agriculture is one of the vital sectors in terms of economic development and a number of countries tend to rely on their agriculture business for national economies; thereby, it is also one of the most sensitive sectors in the world. Under this circumstance, the European Union (EU) is the biggest food supplier. Since the establishment of European trade bloc in the 1950s, the EU has been playing a significant role in international trade. Particularly, this on-going widened and deepened union has contributed to both internal and external development through trade liberalisation in international arena. Nevertheless, it has not fully opened the markets and severely protected the agricultural sector with the common agricultural