Category: Economics

Trade Agreement


Trade agreements between two or more countries involve reaching an understanding on tax, tariff and restrictions applicable on the export and import of goods and services. These treaties, which also include investment guarantees, typically aim to establish a ‘free trade area,’ where goods and services can be exchanged across territorial boundaries without imposing tariffs. The countries (regions) forming a free trade area impose a common tariff on goods and services sold to non-member countries.

Risks in International Trade


 

Regional Trade Blocks at a Glance


The concept of trade blocks is crucial in the context of international trade. Trade blocks are free trade zones designed to encourage trade activities across nations. The formation of trade blocks involves a number of agreements on tariff, trade and tax. The activities of trade blocks have huge importance in the economic and political scenarios of the contemporary world. Over the years trading blocks have played a major role in regulating the trend and pattern of international trade.

International trade deficit, Balance of trade deficit


Trade deficit is a situation when in an economy the imports are more than the exports. In such as case the economy is highly dependent on the import of goods. There are various factors for the trade deficit, such as the country’s inability to produce goods and services, as per the needs of the country, failure of agricultural produce due to natural calamities, etc.