Global Trade

Global Trade

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GLOBAL TRADE

Definition

Global trade is a branch of the wider economics, it describes the exchange of products or goods and services across borders (Simon, 2013). It can also be described as trade that is done between territories. It began long ago but in the modern world it has become more important for the exchange of goods and services (Donald, 2010).

Summary

From the article “unaccustomed victory” the ‘world trade organization’ for the first time in more than twenty years on the island named Bali and in a country called Indonesia agree on a deal that will increase trade relations between its members. Their talks allowed trade barriers to be eliminated and tariffs were brought down. With aid of Roberto Azevedo just before the meeting he encouraged to come to a compromise decision of which they achieved. The agreement foreseen that shipping costs are cut by more than 10% which is turns in to be a large amount of money of around $400 billion annually (David, 2013).

Agriculture sector became one of the hardest issues to agree on. In the effort to help subsidize for poor countries such as India, India threatened to disagree with members in Bali unless developed countries agreed to subsidize food for them. They agreed to the fact that not all subjects on the agenda can be passed and the task was passed to those countries that were eager to press forward. This was done in a bid to increase market liberalization (David, 2013).

Discussion

The article clearly shows that for the success of trade liberalization, there must be a mutual agreement among the member states. Without that other countries may suffer most than others. For the case in the article India tries to get more subsidies in the agriculture since it is a developing country and they term it the need for the country to increase ‘food security’. Global trade is influenced by social, economic and political influence. Hence the harder it is to come to an agreement not it the interference by Roberto to influence the members then the talks would have been futile (Colin, 2012).

In closing, global trade is one of the major types of trade in the world that helps countries exchange products they have and acquire the ones the do not produce. For it to succeed every country willing to participate must come into clear agreement with the rest for there mutual benefit.

REFERENCES

David. Z. (2013, December 14). ‘Unaccustomed victory’. The Economist, 46, 5-6. Retreeved from http://www.economist.com/news/finance-and-economics/21591625-global-trade-talks-yield-deal-first-time-almost-20-years-unaccustomed

Annotation: The members of the world trade organization meet to discuss and make agreement on reducing the shipping rates.

Colin, f. (2012, December 1). Global Entry. U.S. Customs and Border Protection. Retrieved March 23, 2014, from http://www.cbp.gov/travel/trusted-traveler-programs/global-entry

Annotation: it outlines the restriction and tariffs that are placed by the government of the US in its borders and the conditions to import or export goods.

Donald, M. (2010, October 16). Global++Business+Strategies+Final+ExamR5+. Docstoc.com. Retrieved March 23, 2014, from http://www.docstoc.com/docs/103040673/GlobalBusinessStrategiesFinalExamR

Annotation: The important strategies of business in order to avoid failure in business.

Simon, M. (2013, December 14). International Trade and Investment – Group articles | The Global Journal. International Trade and Investment – Group articles | The Global Journal. Retrieved March 23, 2014, from http://theglobaljournal.net/group/international-trade-and-investment/articles/

Annotation: importance international trade groups are analyzed and its importance is drawn.

Partnerships among countries with same interests help create trade groups.