Question

Chapter 9 in the textbook touches upon international trade agreements and two relevant issues, labor standards and the environment in international trade. Please read the chapter and select ONE issue that you feel most passionate about. In your discussion, please respond to the following:

Why do you choose this particular issue?

Please provide an update on your chosen topic. The textbook material is a little behind on timing, so any recent development in the status of the issue, outcome, etc. should be shared.

Answer 1

Answers-

I choose the topic International trade , the environment in the international trade involves the parts outlines the methodological steps, involving both theoretical and empherical work, for accessing weather an observed allocation of resource countries is efficient.

I choose this topic because international trade has several advantage of the growth of country .A central tenet of international economics is that lowering trade barriers increases welfare. Trade agreements between countries lower trade barriers on imported goods and, according to theory, they should provide welfare gains to consumers from increases in variety, access to better quality products and lower prices .

International Trade benefits a country as International trade brings a number of valuable benefits to a country, including: -Trade increases competition and lowers world prices, which provides benefits to consumers by raising the purchasing power of their own income, and leads a rise in consumer surplus.While free trade is good for developed nations, it may not be so for developing countries that are flooded with cheaper good from other countries, thus harming the local industry , If countries import more than they export, it leads to a trade deficit which may build up over the years.Trade promotes economic growth, efficiency, technological progress, and what ultimately matters the most, consumer welfare. By lowering prices and increasing product variety available to consumers, trade especially benefits middle- and lower-income households .

The World Trade Organisation (WTO) has the power of changes in the environment of interation trade and the recent development in thestatus of issues ,outcome etc. is that The emerging markets have simultaneously increased the potential size and worth of current major international trade while also facilitating the emergence of a whole new generation of innovative companies.

  Trade costs are key to determining whether an economy trades and how much it trades. This report uses a novel approach to estimate trade costs and breaks them down into their components: information and transaction costs, governance quality, trade policy and regulatory differences, and technology and transport costs. Trade costs in services are almost double those in goods, but they fell by 9 per cent between 2000 and 2017. Trade in services has traditionally faced higher costs compared to trade in goods, largely due to the “proximity burden” of services trade i.e. the necessity for suppliers and consumers of services to be in close physical contact, and of more complex policy regimes than those applied to the goods trade. Declining trade costs are allowing more services to be traded through cross-border supply (GATS mode 1), in particular, a trend that can be particularly benefitting developing countries and MSMEs. Several factors have contributed to the fall in services trade costs.

Technology is one of the factors that has led to a decline in trade costs in services. A key effect is that global exports of services enabled by information and communications technology have more than doubled between 2005 and 2018. A second factor is policy reforms that, on average, have reduced barriers, although new trade restrictions in some sectors, especially in digitally-enabled services, have emerged. The third factor is investment in physical and digital infrastructures and policies to enhance competition, including foreign participation, which has helped to bring down transport costs and increase connectivity. Digital technologies will affect services trade even further in the future. First, by enabling cross-border trade for services that have traditionally needed face-to-face interaction, digital technologies are likely to reduce the cost of trading in services. Second, digital technologies will blur the distinction between goods and services activities.