Question

Based on your perspective, write a short summary of current issues pertaining to international trade.

Answer 1

SOLUTION

INTERNATIONAL TRADE- CURRENT ISSUES

International trade an international retailing face a unique set of challenges compared to their domestic -only counterparts. The World trade organization (WTO), which is quasi- authority that provides the oversight international trade rules. There are of course a huge number of issues with which the WTO could content. However, the WTO has established a few top priorities for the critical or high-frequently issues.

1) DUMPING

Dumping is when a foriegn trade partner floods a domestic market with the goods that are being sold well below the prevailing price in the domestic market. Dumping is a priority concern for the WTO because it disrupts international retailers by artifically manipulating the prices of goods.

This is an important issue because unrestricted dumping can put domestic retailers at a significant disadvantage because they can't offer a competitive price. This is futhur imbalanced because in many cases, the reason that the foriegn partner is able to produce the goods so inexpensively is because they are not subject to the environmental, labor or regulatory rules that prevail in the domestic market.

2) TARRIFS

A tarrif is a special type of tax or a assessment on goods that are inbound to a domestic marketplace. An escalation of tarriffs can lead to a trade war in which countries begin an escalating series of high tarrifs against the other. This is a priority to the WTO because trade wars rarely have a net positive effect on international trade and global economy.

3) AGRICULTURAL PROTECTIONISM

Agricultural protectionism, the act of altering the normal supply-and-demand process, is the most complex in the economic context. There are several reasons why the WTO considers the top priority

Because many farmers find certain necessary crops unappealing in a profit context, many agricultural producers recieve a subsidy from the government, Subsidies alter the normal process of supply and demand.

Like other goods, tarrifs on agricultural imports can manipulate many aspects of imports/ export process.

Above are some of the current issues pertaining to international trade.