International Trading

In: Business and Management

Submitted By shakerr
Words 1329
Pages 6
CONTENTS
Introduction: 1
Importance of international trade 1
International trade impact on the Syrian economy: 2
Joining International trading organISATION (tRADING bLOCS) 2
Trading blocs with Syria 3
Suggested bloc for Syrian to join 3
Final words 4

INTRODUCTION:
The buying and selling of goods and services across national borders is known as international trade. International trade is the backbone of our modern, commercial world, as producers in various nations try to profit from an expanded market, rather than be limited to selling within their own borders. There are many reasons that trade across national borders occurs, including lower production costs in one region versus another, specialized industries, lack or surplus of natural resources and consumer tastes. ..{1}

IMPORTANCE OF INTERNATIONAL TRADE
International trade that occurs among many countries is not a new a concept, as history shows that there were several instances of international trade. Traders used to import and export different raw material of final product like silk, spices, coffee and textiles. {2}
International trade is important to the modern, commercial world, by expanding the market limits for traders and producers to the markets out of the domestic boarders. Low production costs in one country versus another, specialized industries, lack or surplus of natural resources and consumer tastes are reasons why international trade occurs. {3}
International trade is essential for economy growth for the last half of the 20th century, and countries with strong international trade have become prosperous and have the power to control the world economy. The global trade can become one of the major contributors to the reduction of poverty, as adopting an international trade policy can leverage economy growth buy: {2}
• Enhance the domestic competitiveness
• Benefit of…...

Similar Documents

Trading

...Short Introduction to Trading Theory (S.A.Bartlett) Markets possess both complex dynamic and quantum system qualities. Complex as current dynamics are fully determined by current conditions, with every resulting action or cause producing a reaction or effect, forming the base of subsequent future actions. Quantum as states of equilibrium and disequilibrium occurs between different price bands. With the inherit behaviour of dynamic systems highly sensitive to initial conditions, behaviour of price trends remain a deterministic non-periodic flow, with the perceived construction of trends a by-product of the intra and inter day assorted occurrences exhibiting force upon one another. As the occurrence of these deterministic non-periodic flows exhibit both the reflexivity and factual states of the market; reflexive in its self perpetuating/self defeating distribution, fractural in its display of similar dimensional structure, any qualitative trajectory remains highly dependant on the initial conditions. Given the complex dynamical structure of markets, where the initial conditions remain unstable, bifurcating in accordance with the proceeding reaction or effect, the production of long term (fortnightly, monthly quarterly etc) probability distributions remains highly inaccurate. However, as the use of the mathematical models measuring the structural stability, underlying dynamics and non-linear movement of the basin of attraction, the calculation of the probable......

Words: 593 - Pages: 3

Insider Trading

...Insider Trading - An Analysis in Corporate Regime 1.      Introduction Man amongst all species has proved himself to be the greediest creature since times immemorial. His greed has made him stop as low as possible in utter disregard for all principles of fair play, honesty, morality, etc. In the past and particularly in the last two decades we have witnessed many instances not only at National level but even across the globe where some genius brains have been able to use the vulnerable platform of stock market to their own advantage by enriching themselves enormously at the cost of unprecedented financial losses to thousands of others. A common tool used by these manipulative brains is what in common parlance is known as Insider trading.   With the vast developments in trade and commerce all over, every person has become very materialistic. That is the reason why people in general and particularly those in business have developed profit motives. And it is quite often that to fulfill their own monetary expectations, such people employ illegal or immoral means. One such illegal method used by some vested interests in area of corporate business is insider trading.[1]   Thus, when an insider of a company uses its price sensitive confidential information to buy or sell its securities thereby making a personal profit, he commits acts to the detriment of the interests of bona fide investors of the company. However, in reality, insider trading can be both legal and illegal.   Legal......

Words: 2105 - Pages: 9

Trading

...around 2000 years ago, knew that the first step or rather the first chapter to success is planning. You’d think they’d learn! * * At this stage, a villain would only think of preparing a plan that might lead them to victory but a hero would prepare a plan that can handle multiple possibilities which can turn a potential bad situation in to a moderate acceptable loss. And that is why good always triumphs against evil. Like any well thought out system or machine we require the blue prints and then parts. A car, for instance is a modern day miracle and irreplaceable part of our daily lives, but every car has some key components that are required for it to function, namely: the mechanics, the container, speedometer and rev meter. In the trading industry we also classify essentials into 3 sections: hardware, software and services. * * Hardware: We can start with the organs of every car, the mechanics under the shell, in our case the computer. What makes a Bugatti any different from Maserati, except the price tag? Horsepower, the one thing that puts you ahead of the enemy when racing down Lynnwood road, your ability to push your machine further faster than anyone else. The only way to achieve this would be to build a computer that is capable of running multiple applications at the same time. So what do we look for in such a machine: * Well the brain to any computer would be the CPU (Central processing unit), currently the best CPU on the market you can get......

Words: 2833 - Pages: 12

Insider Trading

...Insider trading is the trading of a corporation's stock or other securities (e.g. bonds or stock options) by individuals with potential access to non-public information about the company. Such a trade is motivated by the possibility of generating extraordinary gain with the help of nonpublic information (information not yet made public). It gives the trader an unfair advantage over other traders in the same security. insiders are defined as a company's officers, directors and any beneficial owners of more than ten percent of a class of the company's equity securities ------------------------------------------------------------2--------------------------------------------------------------------------- It is important to distinguish between a STAKEHOLDER and a SHAREHOLDER. They sound the same – but the difference is crucial! Shareholders hold shares in the company – that is they own part of it. Stakeholders have an interest in the company but do not own it (unless they are shareholders). Often the aims and objectives of the stakeholders are not the same as shareholders and they come into conflict. The conflict often arises because while shareholders want short-term profits, the other stakeholders’ desires tend to cost money and reduce profits. The owners often have to balance their own wishes against those of the other stakeholders or risk losing their ability to generate future profits (e.g. the workers may go on strike or the customers refuse to buy the company’s......

Words: 5514 - Pages: 23

International Trade and Trading Enviornment

...International trade is exchange of capital, goods, and services across international borders or territories. In most countries, it represents a significant share of gross domestic product (GDP). While international trade has been present throughout much of history (see Silk Road, Amber Road), its economic, social, and political importance has been on the rise in recent centuries. Industrialization, advanced transportation, globalization, multinational corporations, and outsourcing are all having a major impact on the international trade system. Increasing international trade is crucial to the continuance of globalization. Without international trade, nations would be limited to the goods and services produced within their own borders. Although the path of world trade growth has been uneven in the past few years (Contraction in 1998, rebound in 1999 and 2000, followed by a slowdown in 2001), the fact that trade continued to expand faster than output is indicative of the increasing openness of national economies. Part of this development is due to the gradual but continued trend towards more liberal trade policies around the world. Since the establishment of the WTO in 1995, Members have been implementing staged reductions in bound tariffs, in domestic levels of support and export subsidy levels for agricultural products, and lifting non-tariff barriers. Specific measures, targeted on improving market access for least-developed countries in particular, have also been......

Words: 716 - Pages: 3

Trading

...seemingly operates more effectively via free trade and restricting free trade tends to create more problems. Then again, free trade can stimulate economic long-term growth by providing numerous trading opportunities to gain a comparative advantage, unlimited production possibilities, and improve efficiency (output of products) (McConnell, Brue, & Flynn, 2015). International trade can create jobs through exports; in fact, the Department of Commerce compiled a report showing that exporting goods play a critical role in relation to employment. Exports created jobs and increased the GDP (Gross Domestic Product) because it expanded the global market for businesses by providing opportunities (Massoudi, n. d.). Furthermore, the data shows that U.S. exports increased to nearly $1.7 trillion and created $165,000 jobs per export (Massoudi, n. d., para. 3). Free trade has a positive impact on the economic condition because of the benefits: promote economic growth and create jobs, competitive market, and economic efficiency. References Massoudi, A. (n. d.). Exports play vital role in supporting U.S. employment. Retrieved from http://trade.gov/publications/ita-newsletter/0510/exports-play-vital-role-in-supporting-us-employment-0510.asp McConnell, C. R., Brue, S. L, & Flynn, S. M. (2015). International trade. In Economics, 20th ed. (pp. 838-865). New York, NY: McGraw Hill Protectionism. (2015). In Encyclopedia Britannica. Retrieved from......

Words: 360 - Pages: 2

Trading

...Essay One In the paper The Dark Side of Trading, Dichev, Huang & Zhou (2014) investigate the effect of high trading volume on observed stock volatility controlling for fundamental information. Past literature almost unanimously states that high volumes of trading are always good as they are correlated with lower transactions costs, easier, faster and cheaper creation and adjustment of investment positions, lower cost of capital and higher prices. However one of the implications of the study is that increased trading also bring downsides that impact various market participants (investors, managers and regulators). The literature seems ignore the fact that a high volume of trading can also be destabilizing, as it injects a layer of trading-induced volatility over and above fundamental volatility. Practices like circuit-breakers employed by regulators to halt trading when prices fall dramatically sustain the fact that the market can sometimes go haywire for no particular reason related to fundamentals. Thus such policies are consistent with the view that trading can create its own volatility and it can get so out of hand that the best thing to do is to halt trading so everyone can cool off. The authors did three experiments, they used matched ETF and dual-class stocks as settings with substantial variation in trading but good natural controls for the underlying fundamental, and then they examined the aggregate time-series of U.S. stocks since 1926 and the cross-section of......

Words: 1194 - Pages: 5

International Trading

...ASSIGNMENT 1 (INTERNATIONAL ECONOMICS) Q1. The increased international trade in goods and services among countries is one of the many aspects of globalisation. Explain the benefits of international trade. According to World Trade Centre, there are 10 benefits of International trade which includes (1) the system helps promote peace, (2) Disputes are handled constructively (3) Rules make easier for all, (4) Free trade cuts the costs of living (5) It provides more choice of products and qualities, (6) Trade raises income, (7) Trade stimulates economic growth, (8) The basic principles make life more efficient (9) Government are shielded from lobbying (10) The system encourages gooog government. (1) The system helps promote peace According to WTO, Peace is the most fundamental of trading system. It helps trade to flow smoothly, easier for countries dealing with disputes over trade issues, and an outcome of the international confidence and cooperation that the system creates and reinforces. (2) Disputes are handled constructively In the trading system, the more trade means more opportunties for disputes to arise. These international trade system is reduced because countries can turn to organzations, in particular the WTO, to settle their trade disputes. For example, around 300 disputes have been brought to WTO since it was set up in 1995. In many cases, countries in dispute always aim to comfort with the agreements. (3) Rules make easier for all Smaller......

Words: 511 - Pages: 3

Trading

...When it comes to FX trading, traders have two sets of currencies that come in a pair. The fluctuations in the exchange rate between these two currencies are where a trader looks to make profit on the Exchange Market. If trader believes that the foreign currency will appreciate against the USD, the trader’s profits will rise with every increase in the exchange price. However if the foreign currency were to fall against the dollar, than the trader would take a loss. Seems simple enough, however traders have option to buy or sell that foreign currency at any time and can go both ways of the currency. So even if the foreign currency were to depreciate against the USD, the trader can still make a profit if they were to sell the dollar on the exchange market. To bring some clarity lets take a look at the Yen. If the Yen were appreciate (rises) against the dollar. A trader would than buy the Yen. By buying the Yen the buyer is also selling the dollar on expectation that the exchange price of the Yen will rise in value. The trader will than decide to close the position, selling the Yen with the exchange price higher than when they first bought it leaving them an increase in value or profit. Now if the Yen were to depreciate against the dollar, the YEN/USD exchange price will fall. That would than leave the trader with a loss as the exchange price falls below their purchase level and leave them a loss. In any trading market, the traders have the option of buying or selling......

Words: 860 - Pages: 4

Trading

...cotton farmers will receive at least $0.70 for every pound of cotton they harvest. If world cotton prices fall below this level, the government makes up the difference, writing a check to the farmers. Some 25,000 United States cotton farmers received some $3.4 billion in annual subsidy checks. Total agricultural subsidies in the United States amount to some $43 billion a year according to OECD figures. Japan is also a large subsidizer, providing some $47.4 billion in subsidies to farmers every year. In relative terms Switzerland, which is not an EU member, spent the most. Subsidies made up a remarkable 68 percent of its farm economy. Iceland was at 67 percent and Norway at 64 percent. European Union subsidies equaled 32 percent of that trading block’s farm economy, while the United States figure was 16 percent. One consequence of such subsidies is to create surplus production. That surplus is sold on world markets, where the extra supply depresses prices, making it much harder for producers in the developing world to sell their output at a profit. For example, EU subsidies to sugar beet producers amount to more than $4,000 an acre. With a minimum price guarantee that exceeds their costs of production, EU farmers plant more sugar beets than the EU market can absorb. The surplus, some 6 million tons per year, is dumped on the world market, where it depresses world prices. Estimates suggest that if the EU stopped dumping its surplus production on world markets, sugar prices......

Words: 1625 - Pages: 7

Trading Restrictions

...Economy Paper on Trading Restrictions Political structure is an important variable facing global marketers. Government policies run the scope from no private ownership and minimal individual freedom to little central government and maximum personal freedom. As rights of private property increase, government-owned industries and centralized planning tend to decrease. But political environment is rarely at one extreme or the other. Legal considerations are closely related with the political environment. In France, nationalistic sentiments led to a law that requires pop music stations to play at least 40 percent of their songs in French; even though French teenagers love American and English rock and roll. Many legal structures are designed to either limit or encourage trade. Today, I’m going to talk about the most used trading restrictions: Tariff and Quota. First, I want to exemplify the importance of trade restrictions for imports, as well as exports by showing what happened in the U.S. Motor industry. In 1980 the United Auto Workers(UAW) and Ford Motor Company petitioned the International Trade Commission(ITC) to recommend relief from import competition. During the first half of that year, foreign companies shipped 1.2 million passenger cars to the United States, increased 21 percent compare to previous year. The foreign share of the U.S. new car market increased from 17 percent to 25 percent in that period. This caused a huge breakdown in U.S. Motor Market. For......

Words: 1404 - Pages: 6

Global Trading

...Abstract Global trade or international trade is simply the exchange of goods and services all around the world. Global trade involves the export and import of goods and services between countries. Goods and services that enter into a country for sale are called imports and goods and services that goes out of a country is call export. Some countries have an advantage and disadvantage on their goods and services. The exchange rates can effects the value of imports and exports. Comparing China and Russia, China has lower labor cost and they have more people in their country. But 58% of Russia exports is oil and oil based products. If the global trade did not exist, it would do a lot of damage to the today’s economy. The Importance of Global Trade Global trade is very important in the economy because it benefits to all the countries and it also create peace between nations. Global trade is simply the exchange of goods and services between countries around the world. No one knows when did global trade started but many countries have been exchanging goods for hundreds of years. Global trade involves the export and import of goods and services across the international boundaries. Goods and services that enter into a country from another country for sale are called imports and goods and services that goes out of a country to another country are called exports. Dating back to about three thousand years ago, Silk Road and Niles River played a big role in trading goods and......

Words: 853 - Pages: 4

Emissions Trading

...Macquarie University Master of Applied Finance ------------------------------------------------- Emissions Trading ------------------------------------------------- Assignment 2 ------------------------------------------------- Onesteel Prepared by: Wayne Andrews Student number: 41712986 September 2011 Subject Number : ECFS905 Lecturer : Julian Turecek Class : Sydney P. T. Company Selection Select an ASX200 company that is expected to have a carbon exposure equal to or greater than 2% of EBITDA at a $23/t carbon price. Question 1 Determine the company’s carbon exposure, including direct (Scope 1) and indirect (Scope 2) emissions and establish that its exposure is greater than 2%. The following table summarises Onesteel’s actual and estimated for FY10, FY11 and FY12 emissions and imputed carbon cost under the currently proposed Carbon Tax, relative to reported EBITDA. Table 1 – Implied impact of carbon pricing imputed to 2010 results | Company Guidance | Fixed Price imputed for comparison | Fiscal year commencing | FY10 | FY10 | FY11 | FY12 | Carbon Price (FY10/11 theoretical) | 23.0 | 23.0 | 23.0 | 23.0 | EITE Assistance Rate | 94.5% | 94.5% | 94.5% | 94.5% | EBIT DA $Mil | 619.0 | 619.0 | 638.0 | 717.6 | Type 1 Emissions | 2.55 | 2.55 | 2.66 | 3.05 | Type 2 Emissions | 1.34 | 1.34 | 1...

Words: 4880 - Pages: 20

Trading

...Interest Rate |   | Year 1 | Year2 | Year3 | Low |   | 8% | 14% | Middle | 4% | 10% | 16% | High |   | 12% | 18% | Trading Case B02A The spot interest rate is known with certainty, while in year 2 and year 3, there are three possible interest rates. This creates scenarios of interest rates; 9 scenarios in year 1 and year2, and 3 scenarios in year 3. As a result, there are ranges of possible fair value for the bonds.   | Year 1 | Year 2 | Year 3 | 1 | 4% | 8% | 14% | 2 | 4% | 8% | 16% | 3 | 4% | 8% | 18% | 4 | 4% | 10% | 14% | 5 | 4% | 10% | 16% | 6 | 4% | 10% | 18% | 7 | 4% | 12% | 14% | 8 | 4% | 12% | 16% | 9 | 4% | 12% | 18% |   | Year 1 | Year 2 | Year 3 | 1 |   | 8% | 14% | 2 |   | 8% | 16% | 3 |   | 8% | 18% | 4 |   | 10% | 14% | 5 |   | 10% | 16% | 6 |   | 10% | 18% | 7 |   | 12% | 14% | 8 |   | 12% | 16% | 9 |   | 12% | 18% |   | Year 1 | Year 2 | Year 3 | 1 |   |   | 14% | 2 |   |   | 16% | 3 |   |   | 18% |   | Cp Bond | Zero C1 | Zero C2 | Zero C3 | MIN | 98.232 |   | 85.852 | 72.756 | MAX | 104.426 |   | 89.031 | 78.098 | AVG | 101.285 | 96.154 | 87.432 | 75.387 | At the beginning of year 1 , Zero C1 would matured and no longer tradable. For the other three bonds, we have private information which enables us to cut out an interest rate, lefting with 6 scenarios. TRADE AT BEG YEAR 1 (interest not LOW) |   | Cp Bond | Zero C1 | Zero C2 | Zero C3 | MIN | 92.161 |   | 89.286 | 75.666 | ...

Words: 461 - Pages: 2

Trading

...susceptible a las enfermedades, pero tiene un precio más alto. Se vende en los mercados de cafés especiales, y también se utiliza en mezclas de café soluble debido a su aroma. Las economías de algunos de los países más pobres del mundo dependen en gran medida del comercio de café. La dependencia es especialmente alta en algunos países africanos. En Uganda, el sustento de aproximadamente una cuarta parte de la población depende de alguna manera de las ventas de café. En Etiopía, representa más del 50 por ciento de los ingresos por exportaciones, mientras que en Burundi la cifra es de casi el 80 por ciento (ver Figura 3). En Guatemala, más del 7 por ciento de la población depende del café para su sustento; y en la vecina Honduras Oxfam International (mayo de 2004). ‘Bitter Coffee: How the Poor are Paying for the Slump in Coffee Prices’. http://www.intermonoxfam.org/cms/HTML/espanol/511/pobreza_en_taza.pdf 4 17 casi el 10 por ciento5. En Nicaragua, el segundo país más pobre de América Central, el café representa el 7 por ciento de los ingresos nacionales6 . Figura 2. Producción Mundial del Café, 2005 Fuente: Organización Internacional del Café. Reporte Anual (2005) Incluso cuando las economías nacionales no dependen del café, las regiones y las comunidades sí pueden hacerlo. En México, el café sigue teniendo una gran importancia, especialmente para los 280.000 campesinos indígenas que viven en su mayoría en los estados más pobres de Oaxaca, Chiapas, Veracruz y......

Words: 62612 - Pages: 251