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Finding proper article from the daily press or other sources n writing 2 pages report about article - Essay Example

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Together with international security arrangements, trade forms the most important component in world relations among various countries in terms of exports and imports of goods and services. This fragile…
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Finding proper article from the daily press or other sources n writing 2 pages report about article
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Finding proper article from the daily press or other sources n writing 2 pages report about article

Download file to see previous pages... This brief paper discusses some of the important issues in international trade relations.
The world economy is in a recession brought about by the sub-prime mortgage crisis in the United States which started sometime in 2007 but later spread worldwide. Because of it many developed countries are facing financial and economic crises as a consequence as seen in the sovereign debt crisis in European countries such as the PIIGS (Portugal, Ireland, Italy, Greece and Spain) which undermined the euro currency and unity of the European Union. It is a crisis of unprecedented proportions which had adversely affected world trade in general.
Recent news reports as seen in the international media point to a lingering crisis that had defied easy solutions. World trade today is conducted mostly under the WTO supervision but there are many trade blocs now in existence that grant special most favored nation status (MFN) to some countries that trade with each other. This is a violation of the WTO rules that state countries should let free trade prevail through its non-discrimination policy in place.
An example of a specific trade bloc is the so-called G-20 (or group of 20) consisting of the twenty most economically powerful countries of the world. However, this group failed to produce a single plan of action that will adequately address the Great Recession in contrast to the Great Depression of 1933. The world today is facing similar challenges in world order as economies are facing stubbornly high unemployment rates such as the U. S. and Europe. A G-20 meeting held in Seoul (South Korea) last year to address the most pressing issues failed to come up with a solution as member-countries could not agree on what steps to take. This is a dangerous situation which had frayed international trade relations because of some massive international trade imbalances of some countries (China and Germany in ...Download file to see next pagesRead More
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