Question

In: Economics

What are the new issues in international trade and investment? In what sense do they expose...

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.

Solutions

Expert Solution

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.


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