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The loss of vessel occurred as on February 28, 2004 a disastrous explosion occurred on board the
bulk carrier or vessel the Ythan which resulted in death of crew and the cargo of 33, 760 MT was
also completely lost. This research would adopt a deductive approach, which aims to verify each
hypothesis by gathering and analysing quantitative and objective data. Tariff extracted on imports at
the boundaries of the country has existed from the 17th century (Organization for Economic Co-
operation and Development, pp-336). This protective policy is mostly adopted by the developing
countries. This makes Chinese exports cheaper and imports costlier in the world. Comparative
advantage theory is when a country produces a good or service for a lower opportunity cost than
other competing countries. The making the claim point was not decided whether Primetrade had
made a claim against the carrier. The WTO has a structure of policies and regulations that entails
conformity among member states establishing acceptable norms in the conduct of international trade.
Therefore these nations actively seek policies and changes that result in better employability, higher
productivity, higher income levels, and a narrowing of the gap between the rich and the poor.
Limitations of international trade are difficulties or barriers that prevent free trade. They will also
analyze the World Trade Organization and cultural diversity in ASEAN nations. Globalization and
WTO is already a huge part in the market today. Apart from inflation and interest rates, the exchange
rate of a country is an important measure of its economic health. For Later 0 ratings 0% found this
document useful (0 votes) 502 views 5 pages Navigating the Complex Landscape of International
Business Transactions: A Comprehensive Course Outline on the Legal Framework, Cultural
Considerations, and Dispute Resolution Mechanisms Uploaded by Ten Laplana AI-enhanced title
and description This course examines the legal framework of international business transactions.
Finally, Rodamia needs to consider maintaining its political stability as a measure to maintain a
healthy economy through appropriate exchange rates. The US has always been the biggest advocate
of free trade since last several decades and it is always desirable that along with free international
trade the currencies of the countries also trade freely in the international market so that unnecessary
trade restrictions and tariffs are not imposed on each other. The judge held that Primetrade would not
have been a holder of bills due to UBS Marsh transaction if it had occurred when bill possession
gave a right to possession of related goods. Countries that have a ranking closer to 100 are more
conductive for doing business by both domestic and international firms. Gwarney and Lawson
(2003) note this ranking method as an effective method of ascertaining the level at which an
organisation has liberalised its markets. The term 'DDP' is ideal if clearance of products for imports
comprises the fee of value-added tax or corresponding tax which can only be subtracted for tax
determinations by an organization for international trade. It includes descriptive analysis of the
economic process; however, it can be used to relate to the selection of phenomena to be scrutinized
and problems made with reference to current issues of public interest (Pinnock 2019). Mehanna, R.-
A. (2004). Poverty and economic development: not as direct as it may seem. The country uses
minimal labor per unit area of agricultural land increasing the productivity levels manifold; however,
it is essential to note that absolute cost advantage does not determine the production and allocation
of labor for producing a good but it is the comparative advantage that gives rise to the production of
a particular good in that country. The evaluation of the value of the good poses a difficulty for the
customs appraisers. In the global market the supply of any good is elastic at a very low price.
According to the Organization for Economic Cooperation and Development (1997) more workers in
more firms in more countries derive their livelihood from cross-border trade and investment activity.
Tanzi further states that trade liberalisation has created new opportunities for corruption, as it
increases the chance that bribes would be paid in order to obtain foreign contracts, privileged access
to certain markets and tax incentives. Together producer’s surplus and consumer surplus gives the
welfare of a country. Terms of trade is the difference between export and import prices in a country.
Wilson et al (2002) also highlights the drop in GDP of post soviet states within the first decade of
transition, as their weighted GDP for the 25 former soviet countries, still stood at around 65% of
what they were initially. In such cases the domestic industry has to supply the domestic market with
less expensive good to win back the consumers.
For example, western commercial bank operators and investors are new and somewhat inexperienced
with transition countries; therefore depositors and investors need to be reassured of the legal
recourse and protection of their investment. Connect the paragraphs with transitional words to make
it complete and stylistically appropriate. By continuing we’ll assume you’re on board with our. There
can arise deficit or surplus (when exports are higher than imports) or deficit (when imports are higher
than exports) in the trade balance of any country. It is worth pondering on the root causes behind the
ever increasing global trade. This is 100% legal. You may not submit downloaded papers as your
own, that is cheating. Also you. Retrieved from, R. (2019). Useful Notes on Product Life-Cycle
Theory of International Trade. Inflation rate in a country is the main factor that affects or determines
a country's exchange rates. In this way the burden of tax is shared by the foreign suppliers.
Supporting such findings, the rich may set up companies in developing countries to benefit off the
low wages causing unemployment to decrease but does change the fact the cost of living is
proportional to such rising. Without the WTO, for example, countries may impose unilateral policies
that can prove detrimental to other countries such as can be recalled of the protectionist policy
imposed by the United States during the Great Depression. Don’t forget that the chosen topic should
be manageable. A number of animal rights activists have in fact waged protests against companies
and individuals who make use of laboratory animals to conduct scientific studies and to develop new
products like cosmetics, household products and medicines. In a customs union, countries impose
lower tariffs among member countries and harmonize common trade policies with non-member
countries (Carbaugh 273). The hypotheses being studied have been verified with the exception of
one, the effect of trade liberalisation on corruption. The shippers were Orinoco and they were to sell
to Primetrade, a Swiss company and they wanted to sell the same quantity of the commodity to
Orient Prosperity to China, so the contract showed end user in China. Fries and Taci (2002) depict
that trade liberalisation and corruption should have significant contributing influences on the level of
economic growth within Kazakhstan. This built using economic theory known as Heckscher-Ohlin
theory emphasizes trade ruler educational game. Correlations studies were conducted on all three
figures initially shown in Table 1. The decade of 1998 to 2008 the amount of imports from Germany
doubled. Considering bills of lading and holder issues, Primetrade may be in an advantageous
position as seen from the case. The transactions to consider here are in this particular case would be
UBS bills transferred on payment to Orinoco and UBS bills transferred to Marsh. Moreover, the
positive effects of imperialism foreseen by Marx and Lenin—namely, the development of colonies
through import of technology and capital—did not occur. But the revenue effect in case of a large
country is higher than that of the small country. As a positive effect of joining WTO, China and other
developing countries are not only serving the Asian market but also the Western market among
others. Specialization create a difference in the availability of commodities in different countries and
hence the need for trade. The determinants of high performing institutions in emerging economies 9.
This is until formal claims are made against contractual carriers. The existence of globalization and
WTO had resulted to a significant change in the world market in the sense that businesses are facing
more challenges because of the need to compete not only within the domestic competitors but also
those in the global market. It is also not right to believe that only developing countries are not
experiencing the challenges of globalization.
The future of the United Nations as the only global intergovernmental organization is also unclear
now. For that reason, it is possible for you to conduct research on one of the issues related to
International Trade and make its thorough analysis. Subsidies will artificially reduce the cost of
domestic producers and tariffs will increase the cost of imports thus jeopardizing the international
trade. Let us write or edit the research paper on your topic. This would depend on whether section
5(2) c and loss of cargo could make Primetrade the holder. Also, Kazakhstan’s natural resource being
natural gas attracts foreign oil companies the world over, to invest in infrastructure within its nation.
Even though there has a considerable increase in the gross domestic product of developing countries,
these nations are subject to the consequences of having a much higher inflation rate in the long-run.
The determinants of high performing institutions in emerging economies 9. International Trade
Debate The United States must place high tariffs and use quotas to restrict trade with foreign
countries. Thus concluding that financial development is essential for economic growth within a
developing economy. In June 2010, the china's central bank allowed some flexibility on its exchange
rate policy and the currency appreciated by 2.9 percent through the end of 2010. Based on these
results, and analyses thereafter, it was concluded that trade liberalisation is indeed beneficial for
transitioning economies as it positively influences human development and economic growth, this
economic growth in turn promotes investment inflow and domestic savings within the country. Sir
Tim Berners-Lee invented the World Wide Web in 1989 while working at CERN. This has also been
called by David Ricardo as “comparative advantage” and is one of the rationales for the existence of
trade. This kind of tariff consists of a specific component and an ad valorem component. Eventually,
a good education will enable the youth to be able to compete and face the challenges associated with
globalization. These newly acclaimed post communist countries also achieved moderate levels of
democracies albeit struggling and turbulent economic and political developments, military conflicts
and coup attempts. There is no doubt that globalization has resulted in changes in the structure of
production and trade to the CARICOM nations, however, may pose significant concerns to the
economies’ sustainable development (ECLAC, 2002). Maximization is the main idea behind a
country’s economy. Effect of Tariff: Small Country and Large Country To demonstrate the effect of
tariff on the economy of a country we will have to a few key concepts like consumers surplus,
producer’s surplus and how welfare depends on these two. Given below are some advantages of the
international trade. This situation in the international market, where the less affluent can be easily
devoured by the markets of the strong and powerful necessitates the presence of an organization that
will oversee fair treatment of all competitors (“Trade, the”). The bilateral merchandise trade of
Canada with Germany accounted to more than 14 billion dollars in 2009. The case of surplus of a
commodity resulting from specialization applies perfectly to Rodamia due to its mode of production.
The bills of lading were issued in February 2004 to shipper of the cargo, Orinoco. But the revenue
effect in case of a large country is higher than that of the small country. The role of technology in
international trade: Technology has had a profound impact on international trade, enabling companies
to reach new markets and consumers around the world. The United States trade Representative asked
the US International Trade Commission (ITC) to begin an official safe guard investigation, under
section 201 of the US trade laws. The arbitration held that Primetrade were holders of the bills for a
short time until the insurance claim was paid. After its passage, many countries adopted “beggar-thy-
neighbor” duties, a measure where one country seeks to gain at the expense of its trading partners
thus exacerbating the situation of the world economy while reducing global trade.
There has been no observer bias or error in gathering the data, as they have been derived and
downloaded directly from their respective sources. Otherwise it should refrain from protective
policies (Carbaugh, 221-229) Conclusion Tariff rate can therefore improve the welfare for a large
country though for a small country there are no advantages. The regression analysis would be
conducted by plotting the independent variables against the dependent variable, on a scatter
diagram, and the results would be displayed on a Scatter Diagram, with a Linear Line showcasing
the Coefficient of Determination. Following the democratic transition, the political freedom and
civil liberties of three major countries Czech Republic, Hungary and Slovenia, were in par with those
of other Western European countries, while other post communist countries also made considerable
progress in their feat. Since the market supply curve gives all combinations of this desired price and
quantity. Hence trade corridors and infrastructure in Mexico are central to the enhancement of paepr
between outllne two countries. Terms of trade is the difference between export and import prices in a
country. International trade also depends on the production capacity of a country in comparison with
that of other competing countries. This sort of position gives a clear advantage to Primetrade and its
rights as Primetrade could be considered as not aware of liabilities and there are several other issues
that were raised - the following conlusive statements have been give by the judge in the case7 -.
Thus confirming the first part of Hypothesis 2, which states that Trade and market policies have
positively influenced economic growth in terms of GDP. Another important feature is that
International Trade can force the development of international relations, provide interdependence
between the countries, and force the development of both national and international economies. This
is one of the main factors that is causing the slow economic growth in the country. Producer’s
surplus is the difference between the minimum price that a producer desires and the actual price that
he gets. But A is accrued to the producers as Redistribution Effect. There are dissimilarities in the
pattern of export specialization of some member state but there are some strong common elements of
the Caribbean trade patterns. As a result, there is a much lesser wage inequality as compared with
the times wherein global trading has not been practiced. The Chinese government has pegged Yuan
at fixed exchange rate against dollar. Countries such as Saudi Arabia and Mexico are competitive
with U.S. chemical production firms. It is also not right to believe that only developing countries are
not experiencing the challenges of globalization. This scenario is similar to that of other countries
such as India, China and some other countries in South East Asia, who liberalised their markets in
recent years (especially China in 2001), and experienced astronomical GDP Growth as a result. In
addition, the body paragraphs should evaluate the mentioned arguments, and a conclusion should
restate the thesis and present the final results. Smaller countries with smaller economies also
oftentimes emerge as losers because of the difficulty in keeping pace with the advancements and
innovations of highly developed countries such as the United States. A quota is a trade restriction set
by a country to maintain and secure the country’s interests. These arent easily transported, so being
able to export them to nearby countries is important. The onus in recent years has been on these
countries including Kazakhstan to build their markets, set up a central bank, and encourage foreign
investment. Wilson et al (2002) also highlights the drop in GDP of post soviet states within the first
decade of transition, as their weighted GDP for the 25 former soviet countries, still stood at around
65% of what they were initially. Thus illustrating that as Kazakhstan experiences more GDP growth,
the domestic savings into financial institutions increases, whilst the amount of money received from
foreign multinationals also increases. It means that a very low price the market has the capacity of
supplying almost infinite quantity of that good. They have succeeded in replacing old stated owned
institutions with new ones patterned after similar western institutions, in a bit to achieve market
economy governments, required for sustainable growth. Resource Advantage Each country is
endowed with certain natural resources such as minerals, water, land, fossil fuels, and essential raw
materials and accordingly their strength lies in manufacturing those finished goods where such
resources are necessary.
Barriers, that are often used, include import quotas, licenses, specific tariffs, and customs duties.
Based on the study that was conducted by Wood (1997), global trading between the East Asia and
the Western countries narrows down the wage gap between the skilled and unskilled workers that are
available in developing countries because of the availability of technology. Comparative advantage
determines International Trade. In this evaluation, it is considered a predecessor event and omitted.
Primetrade sold the cargo to Orient Prosperity or Orient in Jingtang China. Some potential research
paper topics related to international trade include: The effects of free trade agreements on the global
economy: Free trade agreements are designed to reduce barriers to trade between countries, such as
tariffs and other restrictions. The United States trade Representative asked the US International
Trade Commission (ITC) to begin an official safe guard investigation, under section 201 of the US
trade laws. Retrieved November 23 2012 from Morrison W. M.; Labonte, M. (2010). China’s
Currency: An Analysis of the Economic Issues. We use cookies to create the best experience for you.
Choosing a topic may be considered the most important step as it sets the tone for the whole paper.
Its utmost activities required coordinating economic policies and development planning; devising
and instituting special projects for the less-developed countries within its jurisdiction; operating as a
regional single market for many of its members (CARICOM Single Market); and handling regional
trade disputes (Meyer, 2015). Without the World Trade Organizations, countries will be free to
impose trading practices and policies that can be detrimental to the interest of other countries. Every
paragraph of your paper should present a separate argument and lead the reader to a logical
conclusion. Technological Superiority Technological superiority of one country over other in a
particular product will facilitate production of better quality goods at lower cost and that superiority
puts one country ahead of others in a particular good. The main priority of Kazakhstan after its
independence has been to achieve “national economic growth within the context of enhanced
financial stability and social stability”. But as the country opens up to the foreign market the price
falls to PO. However, the United Nations, World Bank and several other websites had a number of
indices that could be utilised for accurate comparison of human development and economic growth
data in all Kazakhstan, most notable of which were the Human Development Index, Corruption
Perception Index and Index on Economic Freedom obtained from these websites. Influenced by the
shift in policies at the global level, Caribbean countries responded with a package of policies steered
towards limiting the role of the State in the economy and reinvigorating stagnant production systems,
which were reoriented towards export markets. Additionally, Caribbean economies are characterized
by differences in per capita income and stage of development that are hard to reconcile with deeper
integration schemes. Thus confirming the first part of Hypothesis 2, which states that Trade and
market policies have positively influenced economic growth in terms of GDP. Not only this but other
East Asian countries are also forced to keep their currencies depreciated so that they can compete
with Chinese onslaught in the international trade. Finally, bookmark the most interesting and
valuable materials while searching for information in the library and on the Internet to save them.
China has retaliated by imposing special tariffs on cars, mobile phones and air conditioners imported
from Japan (Kwan, 2001). International Trade between Germany and Canada The exchange of
capital goods as well as services across the international borders is regarded as International Trade. In
considering the fact that Primetrade initially bought goods from Orinoco and sold to Orient
Prosperity with final stop of Jingtang China and that two sets of bills were issued, the shipowners
bills had to be considered according to the Carriage of Goods by Sea Act 1992 and Arbitration Act
of 1996. A research paper could explore the pros and cons of free trade agreements and their impact
on the global economy. The issues here were meaning of the word 'transaction', and 'possession of
bills and right to possession of goods' and the process by which bills are transferred from one person
to another. A number of animal rights activists have in fact waged protests against companies and
individuals who make use of laboratory animals to conduct scientific studies and to develop new
products like cosmetics, household products and medicines. This issue will create a difficult
environment for international trade through the extra cost required to maintain the long distance
relationship. For instance, if trade reforms are not accredited by international standards, then
corruption may arise.
The aim of this guide is to assist in selecting an Economics dissertation topic and to provide practical
advice on how to go about writing a dissertation. Let us write or edit the research paper on your
topic. The advantage of this kind of tariff is that it can be very easily calculated on the standard
goods that are regularly imported. This implies that the country can produce the commodity at low
cost. It will analyze the differences between common law and civil law and their impact on sales
transactions. First, international trade increases the choice of goods for the domestic consumers. In
the same year Germany was the second largest destination for export for Canada among the
European Union. Firm strategy, structure, and rivalry create pressure to innovate in order to upgrade
competitiveness. Fidrmuc (2002) thereby concludes that the introduction of democracy into a nation,
does not positively promote the growth performance of transition economies, however its effect only
appears ambiguous, especially when democracy is directly included as a measurement variable when
ascertaining growth rates. Considering the Arbitration Act 1996, the following directives have been
given. This is 100% legal. You may not submit downloaded papers as your own, that is cheating.
Also you. In conclusion, world output is very closely related to the volumes of international trade.
The World Trade Organization (WTO) mainly serves the interests of multinational companies. As a
result, both developed and developing countries could lessen the annual crime rates that may occur in
the country. Therefore, the GDP growth rate measured in has been calculated against an initial value
of 1.Therefore if the GDP growth for 2000 had been 9.8%, then the value plotted in this graph would
have been 1.098, and if after that, it was 9%, then the value would have been 1.233% and so on.
Those figures were plotted against the Index of Economic Freedom derived from heritage.org to give
the scatter diagram shown below. Below mentioned table indicates about the employment changes
between 1989 and 2008 in the key industries in the US. However accelerated globalization has
contributed much to the success of mechanical machineries production. For a large country the
optimum tariff rate can actually increase the welfare of the country. Evidence forms an important
aspect of decision making and arbitration and the arbitrator's findings in this case are given below -.
When the production design, process, and inputs become sufficiently standardized, the technology
usually transferred to lower-wage countries. Below is a rough plan of the report: Negotiation
Commercial letters. Write a review Update existing review Submit review Cancel It's good to leave
some feedback. Therefore the international supply curve is not elastic like a small country.
International Trade Centre. (2008). Retrieved July 25, 2008, from International Trade Statistics 2001
- 2005. International trade revolves around many Disadvantages as well which are given below. A
tariff is usually a tax that one country sets on the imported goods or services of another nation. What
is more, all the arguments should be supported with facts and quotes that must be cited according to
the required format. However, democracy reinforces the liberalisation of the economy, which in turn
inadvertently leads to better growth performance. Kazakhstan has fully liberalised its market, whilst
adopting democracy, and according to Salih (2005), democracies are effective in liberalising
economies, whilst open markets are effective in expanding trade. A current-account deficit is the main
external factor that affects international trade.