Trade and World Output, Essay Example

International trade may be briefly defined as the exchange of goods and services across international borders.  International trade accounts for a significant share of gross domestic product (GDP) in a large number of countries.  Historically, trade agreements between countries were negotiated by bilateral trade agreements.  In the 19th century with the advent of the British Empire, return advocated for free trade concepts.  Post the second world war.  The move has been towards multilateral trade treaties, i.e. GATT.  Bodies such as the World Trade Organization have attempted to shift the pattern to a ” global regulated trade structure”. (Anon, 2009).

If we cut off trade  between countries.  This would have a significant impact globally.  Consider a country like Canada, not providing China with much needed coal to fuel its power stations.  This would impact China’s ability to produce a electricity, and subsequently its ability to manufacture goods for export.  The world is now inextricably linked by world trade agreements.  Raw materials, like the production of oil and related by-products are extracted in the Middle East and shipped to refineries throughout the world.  If trade were to cease between the middle eastern oil producers, i.e. the suppliers and that of the nations which consumes the products i.e., the demand.  We would create a situation where there was insufficient fuel in order to drive the economies of the Western world, and others reliant upon petroleum products for energy and domestic consumption.

Governments are responsible for both promotion and restriction of international trade.  In the latter, this is often where disputes occur between countries.  Remedies often involve sanctions and the prevention of exported goods to the offender.  A current example of this being the position of Iran , and its uncontrolled nuclear program outside the auspices of the International Atomic Energy Authority.  It’s testing of long-range missile weaponry systems and threats by the regime to Israel have created considerable suspicion in the international community.  With regards to the intentions of the government of this country.  As such, the USA, together with a number of other countries have requested sanctions to be imposed again in round through the United Nations Security Council.  Similar concerns have been identified with the regime in North Korea.

The new emerging economies in the world, i.e., China and India are heavily involved with world trade promotion.  This is achieved in a number of ways, e.g.  World trade fairs, trade expositions, advertising campaigns through the media and trade delegations..” India Trade Promotion Organisation (ITPO) is the nodal agency of the Government of India for promoting the country’s external trade. ITPO, during its existence of nearly three decades, in the form of Trade Fair Authority of India and Trade Development Authority, has played a proactive role in catalyzing trade, investment and technology transfer processes. Its promotional tools include organizing of fairs and exhibitions in India and abroad, Buyer-Seller Meets, Contact Promotion Programmes, Product Promotion Programmes, Promotion through Overseas Department Stores, Market Surveys and Information Dissemination.”  (ITPO, 2010)

The media and particularly television, and the Internet are powerful means of expression for developing world trade.  China takes particular good advantage of this media, consider  ” Chinese President Hu Jintao called for sound preparations in the run-up to the 2010 Shanghai World Expo and hoped the success of the event would have positive influence on the global economy.”  (CCPIT, 2010).

Works Cited

Anon. (2009). Regulation of International Trade. Retrieved 2 19, 2010, from International Trade: http://www.apparelsearch.com/Definitions/Shipping_Freight/international_trade.htm

CCPIT. (2010). China Council for Promotion of International Trade. Retrieved 2 19, 2010, from CCPIT: http://english.ccpit.org/

ITPO. (2010). India Trade promotion Organisation. Retrieved 2 19, 2010, from India Trade promotion Organisation: http://www.indiatradefair.com/