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Aid for trade (2) - Coursework Example

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The exchange of goods or service is subject to the taxations and regulatory oversights, particularly through customs.
The essential nature of rules and…
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Aid for trade (2)
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Download file to see previous pages As part of its mandate, WTO formulated aids for trade to assist developing countries establish trade infrastructure and capacity necessary to capture trade opening benefits (Lombaerde & Puri, 2013, p. 570). Aid for trade offers concessional loans and grants to developing countries for trade related programs and projects targeted to benefit the international trade.
Application of international standards is because of its significance and key component to implementation and process of operation. International standards provide scalability of services on offer as well as ensuring desirable interaction between every participant involved in international chain of supply (Trebilcock et al., 2013, p. 47). The legal framework of every country involved in international trade is key to success of international business. However, there are various differences between legal frameworks of each country. A country’s laws serve to regulate business practices, define policies, obligations and rights involved. The government of a particular nation is the defining framework of within which businesses operate.
Most businesses have contract that regulates transactions. Similarly, contract law is responsible for governing contract enforcement. A strong legal system exists across the borders to protect businesses against theft, blackmail, threats, smuggling, and piracy. In addition, a legal framework prevents government bureaucrats from seeking favor or taking part in corruption activities, as well as the violation by local authorities.
When two countries have trade engagements, each of the countries enjoy gains that arise from varying domestic exchange ratios. The difference in the production cost of goods and services in each country creates exchange ratios that favor each side involved.
International trade also enables both national consumers and producers to benefit from an ...Download file to see next pagesRead More
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