International trade Important branch of economics Free Essay Example, 1500 words

In many countries there is a tendency of people to buy goods from other prestigious countries in spite of the fact that the goods are produced in their own country. In this context the country suffers a lot as it has to spent unnecessarily a large amount of foreign exchange earning to buy from other countries. The cost on transportation has to be incurred extensively. Besides there develops a tendency of bad habit tendency of importing goods from other countries. Thus in this regard the country is compelled to reduce its production within the country which it can easily produce. In spite of all the benefits of international trade it is observed that many advanced countries put all sorts of unnecessary restrictions such as tariffs, quotas, licensing, embargoes, subsidies quotas, standards, subsidies etc. This was in the case of Pakistan when European Union countries were imposing unnecessary restrictions. Whereas in the case of Bangladesh, Srilanka, and Vietnam such restrictions were not imposed. After several meetings with the European Union Pakistan received some relief. Whenever there develops deteriorating political relation the upper hand country puts embargo on its exported and imported goods. We will write a custom essay sample on International trade: Important branch of economics or any topic specifically for you Only $17.96 $11.86/pageorder now Some standards are imposed on specific goods and services are imposed according to which the country has to use. Export licenses are issued to certain counties according to their likes. Subsidies are granted by the government on specific goods imported from other countries which causes a huge loss to the government. This encourages the producers to buy from foreign countries. Sometimes in order to protect the industry of its country government restrict from buying from other countries. Due to the recession in United Kingdom, low growth in United States and debt crisis in several European countries, the trade and economic growth of China and India has declined. Simultaneously, the high international prices and energy crisis in most of the countries have led to the decline in international foreign trade.