StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...

International Trade - Exporting and Importing - Essay Example

Cite this document
Summary
International trade is the importing and exporting of goods and services across countries boundaries. The international community which is comprised of different countries and international organization has set up rules and regulations that govern this type of trade…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER94% of users find it useful
International Trade - Exporting and Importing
Read Text Preview

Extract of sample "International Trade - Exporting and Importing"

Download file to see previous pages

Some of the popular tractors manufactured and exported by the USA are, John Deere, Ford Son and Kubota. The companies engaging in international trade have to face various barriers before they can market their produce to oversee countries. The export of tractors from the USA to Chile or Thailand is affected by the following factors; The demand for the product is the principle factor in the determining the viability of the country to export the product to. An example is the tractor which is used for tilling to produce crops for local and foreign consumption.

Chile produces lumber, fruits and vegetable, grapes, pears, onion, wheat, corn, oats, peaches, garlic, asparagus and beans. Its major agricultural exports are fresh fruits, canned vegetables and wines. The government of Chile is encouraging more export from Chile to boost the country economy. Thailand on the other hand is a main exporter of rice. Due to this, tractors, which are used for tilling in large scale farms, are usually in high demand. Before considering whether to export the tractors to another country.

Careful evaluation must be done to ensure that the country does not have the technology or enough facilities to manufacture the product being exported. If the country has the means to produce the same product, then the exporter will be faced by stiff competition by the local manufacturers who may offer the same product at a cheaper price. The existing trade blocks can p. , Ecuador and Peru; if these countries have the ability to produce tractors then Chile would be obliged to purchase the tractors from the other member countries.

This in turn would limit the exportation of tractors to Chile. Chile has signed bilateral trade agreement with the USA, Singapore and Jordan, this trade agreement encourages trade between USA and Chile, tractors can hence be exported to Chile with ease and the manufacturer can succeed in exporting tractors to this country. Thailand on the other hand belongs to the ASEAN trading blocks. The countries in this trading block are Philippines, Singapore, Indonesia and Malaysia. The free trade agreement between the USA and Thailand have not yet materialized hence the tractor exporter may have difficulties exporting to this country.

Internet According to Rajib (166), the internet and E-commerce has led to the globalization. Customers from all over the world can search the internet and find products of their choice. Upon identification of the product to purchase they can pay online and also carry out other transactions through the internet. The firm seeking to export tractors to Chile and Thailand can use the internet to advertise the tractors. Bilateral trade agreements These are trade agreement between two countries, the agreement dictates what a country will export and import from its partner.

These trade blocks can either promote or hinder trade between two countries. If two countries sign bilateral trade agreement then exporting and importing goods becomes relatively easy due to reduction of barriers and excessive import tax. However, these agreements may hinder other countries from exporting products to those with bilateral trade agreements. Exporting tractors from USA to Thailand may be hindered by lack

...Download file to see next pages Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“International Trade - Exporting and Importing Essay”, n.d.)
International Trade - Exporting and Importing Essay. Retrieved from https://studentshare.org/miscellaneous/1530011-international-trade-exporting-and-importing
(International Trade - Exporting and Importing Essay)
International Trade - Exporting and Importing Essay. https://studentshare.org/miscellaneous/1530011-international-trade-exporting-and-importing.
“International Trade - Exporting and Importing Essay”, n.d. https://studentshare.org/miscellaneous/1530011-international-trade-exporting-and-importing.
  • Cited: 0 times

CHECK THESE SAMPLES OF International Trade - Exporting and Importing

Perspectives on International Trade and Finance

International trade consists of exporting and imports.... This paper “Perspectives on international trade and Finance” discuses import and export strategies of Nike Inc.... hellip; The author states that international trade approaches have become an inevitable venture among various multinational companies.... For this reason, several countries are striving to reduce trade blocks with the aim of easing the process of international trade....
7 Pages (1750 words) Assignment

The Ricardian Model of International Trade

international trade (Name) (Institution) Introduction The growing interdependence between countries is as a result of trade.... hellip; Classical theorists continue to influence modern theorists on international trade with some of their ideas mirroring one another.... This paper is going to examine some of the concepts of international trade beginning with the Ricardian model, followed by the Heckscher and Ohlin model.... The Ricardian Model of international trade The Ricardian model of international trade is one of the earliest models of international trade....
7 Pages (1750 words) Essay

Effects of Expected Future Increase in Oil Prices on the Market for Oil and Other Fuels

One of the major steps towards averting the looming crisis and to save economies that are incurring huge expenditures in importing oil is to adopt other substitutes to fossil fuel.... Policies of Organization of the Petroleum exporting Countries (O.... Increase in oil prices will also lead to high export bill resulting in trade deficits and a further weakening of the dollar.... Being one of the largest oil regulatory body, their actions will greatly affect production levels as well as international prices....
6 Pages (1500 words) Essay

Exporting and Importing for a Developing Country - South Africa

exporting and importing for a Developing Country Name: Institution: exporting and importing for a Developing Country Question 1 South Africa, which is officially referred to as the Republic of South Africa is a nation situated at the southernmost tip of Africa.... South Africa is a developing country, according to the standards of the CIA and the United Nations Conference on trade and Development (UNCTAD) (CIA, 2013).... The country's economic position is rapidly advancing, particularly as a result of its robust trade initiatives....
7 Pages (1750 words) Essay

The International Trade in Antiquities

Many countries across the globe have imposed restrictions on this trade, especially exporting and importing.... This essay examines the two positions on international trade in antiquities.... Some of the traders involved in this trade of antiquities would like to see restrictions on the flow of antiquities removed or relaxed.... This trade cuts across local thieves to larger international looting networks.... It is difficult to quantify this trade but it is estimated at four billion dollars annually....
6 Pages (1500 words) Essay

International Trade Operations

As the business operations are carried out on the cross-border level, several international as well as domestic events taking place within both the exporting and importing countries may have their impact on the extent of risk associated with payment.... This report provides an insight into the payment risks involved in international trade activities.... … The report international trade Operations has been designed and formulated for ABC Ltd, which is a medium-sized company engaged in manufacturing electronic goods in UK and exporting them to both developed and developing countries....
12 Pages (3000 words) Essay

Effects of Expected Future Increase in Oil Prices on the Market for Oil And Other Fuels

Oil prices are generally considered to be very volatile and are hard to predict with certainty how the outcome will be in… The future increases in the price of oil pose a serious economic problem to countries that immensely rely on oil for its economic growth.... Nations must now come to terms with the harsh reality that dependence on oil is as short-term solution and the other sources of Hubbert (1956) had predicted that the production of oil in America followed a bell shaped graph trend....
6 Pages (1500 words) Essay

International economics

The exchange rate risk inherent in exporting, and importing goods and servicesThe exchange rate risk in exporting and importing goods and services is transacted exposure where there is risk in fluctuation of the foreign currency in which a business operates.... A current account balance refers to an instrument that measures the foreign trade of a country (Becker 100).... The financial account represents loans and investments while the current account represents the trade balance which includes imports International economics A current account balance refers to an instrument that measures the foreign trade of acountry (Becker 100)....
2 Pages (500 words) Assignment
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us