Category: Economics
World Trade Blocs
Apart from the global trading agreements, there are many regional trading blocs designed for reducing protectionism and fostering world trade. Some of the trade blocs in the world are as follows:
1. European Free Trade Association (EFTA)
Countries such as United Kingdom, Austria, Denmark, Norway, Sweden, Portugal and Switzerland joined for a better trade in the region in the year 1960. Under this EFTA group they abolished all types of protectionism. In the year 1972 both UK and Denmark abandoned their membership.
Trade Policy
Trade policy defines standards, goals, rules and regulations that pertain to trade relations between countries. These policies are specific to each country and are formulated by its public officials. Their aim is to boost the nation’s international trade. A country’s trade policy includes taxes imposed on import and export, inspection regulations, and tariffs and quotas.
Constituents of Trade Policy
A trade policy generally focuses on the following specifications in terms of international trade:
Heckscher-Ohlin Model Overview
The Heckscher-Ohlin model assumes huge importance in the context of international trade. Developed by two renowned Swedish economists named Eli Heckscher and Bertil Ohlin, this general equilibrium model of international trade is based on four economic theorems. The Heckscher-Ohlin model has been developed on the Ricardian theory of international trade, considering the fact that pattern of trade is guided by the endowments of factors of production.
International Trade Theory and Policy
International Trade Theory deals with the different models of international trade that have been developed to explain the diverse ideas of exchange of goods and services across the global boundaries. The theories of international trade have undergone a number of changes from time to time. The basic principle behind international trade is not very much different from that involved in the domestic trade. The primary objective of trade is to maximize the gains from trade for the parties engaged in the exchange of goods and services.
China Trade
According to an economic survey published by the Organization for Economic Cooperation and Development (OECD) in 2005, Chinese exports grew at an average rate of 6% since the mid-1980s. Although China’s export growth was affected by a global slowdown, the country overtook the US to become the world’s second largest exporter by end-2007. The OECD had predicted that China would become the world’s largest exporter by 2010.
Trade Data
Trade data shows fluctuations in trade volumes and trade flows both in case of regional and cross border trade. Trade statistics reflect how change in demand affects the exchange of goods and services between the trading nations.Trade information provides an idea about the overall performance of the world economy.
