Professional Documents
Culture Documents
INTERNATIONAL TRADE
Submitted to:
Prof. Raysam
Submitted by:
Ashini Mody
08BS0001751
Eventhough, International Trade is doing very well these days, there lies a
challenge at every step. With increase in competition, international trade is
subjected to many challenges. Challenge of international trade may be
psychological, infrastructural, and physical. The challenge of international trade
and other associated information and guidelines are usually made known in the
trade policies.
The above mentioned three challenges affect the economy at the enterprise and
micro levels.
After the terrorist attacks on the World Trade Center, there was global economic
slowdown. International trade suffered massively. There were tremendous
fluctuations in the exchange rates. Starting from anthrax attacks to the terrorist
attacks on Sept 11th, the trade scenario worldwide has changed dramatically since
then.
Some of the arguments advanced against international trade include the following:
International Trade become a reason for economic instability and result into
conflicts with economic planning.
International Trade inflicts harm on those home industries whose prduct are
displaced by the imports.
Hindrances Faced
National Defence
In 1930s when the Great Depression spread from one country to another by
disrupting the international flow of goods, services and capital. Today the
argument against international trade has been reinforced by government
policies directed toward achieving full employment and economic growth.
Most nations are unable to achieve the objectives of full employment and
growth as members of an in international trading system.
Production
Other Barriers
There are also other common barriers which are faced by all nations like
Language Barrier, Political Barrier, Infrastructure Barriers, Currency
Barriers which becomes impediments to International Trade. It also affects
Growth of the country which affects their GDP and also relationship between
two countries.
In order to overcome the challenges faced by the international trade market, several
measures can be adopted. With regard to shipments, export and import of
commodities, if the shipment can be traced in real time, loss worth several million
dollars can be prevented.