Advantages Of Technology In The International Market

Essay, Research Paper

Technology plays a major function in international trade. Databases, nightlong bringing and facsimiles have opened the universe market to non merely larger companies but little 1s excessively. To add to this globalisation, companies and even rivals are uniting and organizing confederations to cut cost and increase the net income border. Chrysler, General Motors and Ford have formed an confederation in research and development to avoid duplicate. These confederations are non merely with domestic companies but they besides go over national lines. Companies are forcing for integrating of the universe economic system in hope for increased net incomes and authoritiess are get downing to listen.

Since 1986 ( GATT ) General Agreement on Tariffs and Trade have taken the incendiary to travel towards the liberalisation of international trade. GATT members agreed to cut down duty and non-tariff trade barriers. From 1986 to the present due to GATT & # 8217 ; s lead many markets have been unfastened to the United States increasing exports and increasing efficiency through competition.

One of the most aggressive liberalisation groups to follow GATT & # 8217 ; s lead is APEC ( Asian Pacific Economic Community ) . APEC consist of 18 states that account for 1/2 of the universes end product. The three largest economic systems Japan, China and the United States are members. APEC leaders are committed to accomplishing free and unfastened trade for the part by 2010. APEC is traveling towards this end through many agencies including speed uping initial Nipponese duty cuts by 50 % . China will besides cut a figure of duties by 30 % . Indonesia and other APEC members are besides cut downing duties aggressively. What sets APEX at the caput of the battalion taking liberalisation is it wiliness to widen benefits of rank to everyone. APEX is willing to widen the benefits of cuts in duty and non-tariff barriers to all states willing to do comparable cuts. This is a major inducement for all states because the Pacific Rim is the fastest turning market in the universe and big net incomes are to be huffy

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To set these cut in trade barriers in perspective Lashkar-e-Taibas look at the company Chrysler. Chrysler is presenting a right handed drive version of the Ne subcompact to the Nipponese consumer. Chrysler plans to sell 4,000 units at their 200 show suites. They are trusting for even more success with the right handed versions of the Voyager and Wrangler which they plan to present following twelvemonth. With Nipponese subsidizes on exports which lead to a high monetary value on Nipponese domestic goods, Chrysler should be really competitory.

Liberalism in trade, though progressive vary a batch with country. The European Union dwelling of the states of western Europe have established a free trade zone between themselves but those countries outside the brotherhood trade with the same old trade barriers. Duties on sensitive goods still remain. Sensitive goods range from agribusiness and natural stuffs to footwear and furniture. These patterns may look unjust but the brotherhood is get downing to open up trade with Eastern Europe, the Mediterranean and hopefully they will take the APEX inducement to open thier market. If non we have policies that we can follow to coerce free trade.

The United States is in a alone place in the universe economic system being the largest consumer state and besides a major exporter. The U.S. can utilize the menace of trade countenances to open up closed markets and even alter states policies. An illustration of this is the U.S. menace to utilize trade countenances towards China. China has a flourishing industry pirating U.S. movies and music. This industry cost the U.S. one million millions. The menace of trade countenances forced China to check down on these pirating industries.

The universe is traveling towards the liberalisation of international trade. Large economic communities are being formed to do trade more profitable for everyone involved. The APEC enterprise takes this even farther with programs to integrate the whole universe into a free trade country, therefore doing the full universe more efficient and goods less dearly-won.