The paper "The International Trade between Economies " is a good example of macro and microeconomics coursework. Economies undergo different phases of a business cycle and the ability to deal with the different financial needs increases the operational efficiency. Economies due to globalization have come together and looked to work as a single unit where no international boundaries refrain from trading with each other. The development of international boundaries have provided different benefits but at the same time also increased the different complexities. This has also resulted in creating a situation where economies are looking to gain from international trade despite having different barriers and restrictions which have an impact on the overall trade relations.
The ability of economies to come to a common understanding and remove the different trade barriers have yielded effectiveness and have ensured that the society on the whole benefits. This essay thereby focuses on international business and looks to identify the manner in which international trade has created different barriers and the different machines which will help to remove those barriers. The overall focus will thereby lie entirely on creating and developing a mechanism through which economies are able to gain from international trade and the society and the common people are able to gain. International trade provides an opportunity for both the developing and the developed countries to ensure that they are able to work on their strengths and competitive areas of advantage but would require that they understand the different areas through barriers can be removed.
Working and developing strategies which focus on removing the different barriers and creating an environment where economies are able to carry out free trade with one another will ensure that economies prosper (Engargio, 2007).
This would also create an opportunity through which the different needs and requirements would be better understood and would provide a framework which would help the economies to understand the different environmental needs in a better way. This calls for an urgent need to develop strategies which are aimed towards improving the overall condition of the economy so that people who enter into trade with one another will be able to gain from it. The opening of the market has given a boost to trade and economic growth all around the globe.
Despite the different benefits which accrue towards the business yet the presence of tariffs in the form of taxes continues to remain one of the key concern while looking to enter into trade relations. Reducing the different obstacles will help to multiply the gains and ensure a better future with better growth rates. OECD believes that reducing the tariffs on merchandise and trade by 1% will help to increase the worldwide trade by $160 billion which is around 2% of the GDP of some developing and underdeveloped countries.
This would be a huge boost to the economic growth for all economies and would provide an impending effect through which business economies will prosper (Lasserre and Schutte, 2006). The impact will be a stringer for the developing countries as it will provide the people with better products at lower prices and will help to develop a culture where the society is able to gain from the different trade which takes place between nations.
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