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How import and export restraints governing foreign trade can affect a country positively and negatively - Essay Example

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The researcher of this essay will make an earnest attempt to compare and contrast how import and export restraints governing foreign trade can affect a country positively and negatively. The trade of goods among countries has been occurring for thousands of years…
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How import and export restraints governing foreign trade can affect a country positively and negatively
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How import and export restraints governing foreign trade can affect a country positively and negatively

Download file to see previous pages... This research will begin with the issue of export restraints. The exports of a country represent the goods and services that are produced locally to then be sold and shipped to customer in other countries. In 2006 the world top exporter was Germany with $1,133,000,000,000 in outgoing trade. In order to achieve high export total countries need to have open and flexible economic system with excellent manufacturing and production capabilities. In new knowledge economy the ability to transfer information at rapid speeds has allowed the proliferation of service exports. The governmental policies of a country can provide exports restrains that may negatively or positively affect an economic system. For example in a country with restrictive environmental laws many industries such as the chemical industry may not be able to establish operation, thus the country will be a poor exporter of these types of goods. A closed economic system can be a major restraint for exporting activities. In China before the reforms of 1979 which began a path towards economic recovery China’s export were low and could not compete in the international marketplace. The country changed its economic policies that created a semi-open system. The changes which culminated with creation of open economy after China gain entrance into the World Trade Organization in December of 2001 have allowed China to have three consecutive decades of 10% annual economic growth. A country culture and beliefs system can become a restraint for export activity. ...Download file to see next pagesRead More
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