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A trade protection policy typically ensues from the global politico-economical dynamics and aims at protecting economies around the globe from the detrimental influences of monopolistic as well as oligopolistic trading mechanisms. However, owing to the fact that “global trade…
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Download file to see previous pages... bserved that cutting edge improvements in the area of information technology (IT) have made most of the business processes easier as well as economical, apart from pushing geographical boundaries into near obsolescence. These improvements “have made it less costly for consumers to determine the characteristics of products produced abroad” (Krol, 2008, P.3), and have also provided the producers/manufacturers with the ease to gauge consumer preferences. As a result the manufacturers are in a better position to customize their products and/or services with an aim to tap the foreign markets. Hence it can easily be comprehended that the modern business scenario that prevails in the global arena is highly competitive and the players are keen on utilizing every possible avenue to maximize their gains. It may be observed that “income growth in developed countries and even in some less-developed countries has increased the demand for goods and services produced domestically as well as from abroad” (Krol, 2008, P.4), which implies that the volumes of international trade – and hence its inherent perils – have been rising incrementally, thereby calling for efficient trade protection policies. Another important reason for the implementation of such policies is that “trade restrictions have decreased significantly since World War II” (Krol, 2008, P.4). In the context of global economies it has been observed that the developed nations can afford to subsidise, the developing nations prefer barriers to protect their trading activities.
Data from the World Bank reveal that a large number of trade restrictions have been brought into effect as “several countries, including 17 of the G-20, have implemented 47 measures whose effect is to restrict trade at the expense of other countries” (Gamberoni & Newfarmer, 2009, P.1).
Within the eventful cauldron of international trade one of the phenomena that raise concern is that of dumping which, according to the World ...Download file to see next pagesRead More
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