In: Economics
What are the new issues in international trade and investment? In what sense do they expose national economies to outside influences? Share your thoughts and or articles that help explain the answer.
New Issues in International Trade & Investment
Even though the international markets are facing various structural
and functional improvements in trades and investments, there are
various problems affecting them in the new period of economy. The
problems include dumping, tariffs, agricultural protectionism,
intellectual property theft and counterfeiting etc. Improved
technology has various impacts in both the positive and negative
aspects. Many countries enjoy the advantages while many are
suffering from the worst part of the technology.
Countries through increased ability of foreign trade try to
increase their market share by dumping. Dumping makes the worst
part of the open economies. Countries which are able to produce
goods cheaply dump their commodities in a very low price to foreign
economies which makes the domestic industries in the foreign market
to struggle competing with them. Developing countries are most
affected by dumping.
Tariffs charged on foreign imports are another problem for the
current international trade and investment. Rather than taxing on
imported commodities affecting the domestic markets, countries
adopt the method to use against according to the diplomatic
decisions. Tariffs may reduce the ability of efficient goods to
compete in the international market.
Agricultural protectionism makes the international trade of
agricultural goods restricted to countries protecting the domestic
sector and farmers. Countries, especially the developing ones have
high risk of managing the agricultural sector to functions well.
They adopt protectionist policies to reduce the level of
agricultural goods entering to the economy through imports. This is
a notable problem in the current scenario of international trade
and investments.
The problem of intellectual property theft and counterfeiting is
high in the current international markets. The development of
technology has a bad impact with false information and illegal
affairs in international trade. There are many industries in
different countries focuses on working over intellectual theft and
counterfeiting. The returns are high when they adopt the method by
making consumers believe that the product is genuine while it is
not.
These all problems stands against the scope of international trade
affecting the full swing functioning and level of investments.
These all are able to pull back the interests to invest much in
foreign trade and encouraging foreign markets. Mostly, developing
countries are worst affected by these problems in the international
markets.