Intenational Trade Policy Essay Example | Topics and Well Written Essays - 2250 words

Intenational Trade Policy - Essay prototypeTrade is the driving force for the economic development of theses countries.Countries connected by common currencies, policies and institutions could converge their incomes to the richer countries by improving the look at between the countries. Faster economic fruit is largely depended on care openness. many a(prenominal) countries adopted the trade liberalization policy and joined in the world trade for achieving the economic growth all most all the countries have achieved their goals of through liberalized trade policy. globe bank studies show that during 1946 and 1986 vigorous and uphold liberalization led to the rapid growth of exports, which further led to economic growth (Jagdish N. Bhagwati, 1978, Annatomy and Consequences of Exchage underwrite Regimes) 1. 1994 study reveals that poorest countries similarly grew and develop between 1960 and 1986 due to openness of the trade, which led to higher productivity (Alberto F. Ade s and Edward L. Glaeser, 1999, march on Growth, Increasing Returns, and Extent of the Market) 2When we study the history of economic development we attestator that trade is a driving force for economic growth in developed and under developing countries. Since World War II the expansion of trade has played a dynamic role in global economic growth. Till 1994 before the World Trade Organization came into existence multilateral trade was restrict to industrial countries. From 1994 the multilateral trade has expanded, to many countries of developed and underdeveloped including the countries of agricultural base due to liberalization. As a result of multinational liberalization all countries are benefited in their economic growth by unveiling their unexploited potentials. Since early 1970s world economy is in the midst of strongest period of sustained global growth duly maintaining the inflation at low levels, same trend is continued into 2007. We witness an unexpected and robust grow th in India and China including other developing countries. Strong carrying out is also witnessed in low-income countries, such as sub-Saharan Africa (Rodrigo de Rato, Managing Director, IMF, Sustaining planetary Growth, March 30, 2007)1The main cause of this prodigious performance is attributed to solid growth in productivity, which led to growth in profits and real wages and also absorbing the sharp increase in prices to maintain the inflation at low levels. This global economic growth is make possible not merely on solid growth in productivity but rapid growth in international trade especially the developed and underdeveloped countries connectedness the global market. Entry of India, China and Eastern Bloc of Europe in the multilateral trade has made a substantial contribution to global economic growth. Besides other factors such as instauration of new technologies in manufacturing and service activities, increasing international mobility of capital, large-scale movements of underemployed labor out of farming into manufacturing and service in many developing counties and migration flow of poor counties towards the advanced economies, global integration of trade and financial market has produced tremendous benefits and trade is the driving force for this global economic growth (Rodrigo de Rato, Managing Director, IMF, Sustaining Global Growth, March 30, 2007)1If we examine the development of economic growth of individual member countries