International Economic Essay Example for Free

International Economic EssayGlobalization process refers to the universewide incorporation of economic, cultural, political as well as religious and social arrangements. There be other definitions with the IMF referring it as the growing economic interdependence of nations globally through improving total and range of inter-country business, free international capital flows and extensive widespread of technological knowledge. Economically, its defined as the union of prices, products, wages as well as interest rates and margins to fit in the developed countries standards.Globalization has various advantages such(prenominal) as appearance of global production, markets as well as wider vex to a variety of internationally produced goods for consumers and producers. Secondly, there is emergence of international economic markets and greater access to external funds for local, national and other borrowers. Thirdly, its economically beneficial in that there is recognition of an i nternational common market depending on the autonomous exchange of commodities between nations.Fourthly, there is a formation of world political government that maintains the relationship between nations and ensures the freedom arising from social and economic internationalization. In addition, there is a greater information flows between different countries and then enhancing communication, while encouraging intercultural contacts and adoption of other cultural ideas consequently promoting the adoption of new technology and practices therefore encouraging unity and harmony. Finally, it encourages global cooperation which assists in firmness of purpose environmental challenges such as water and air pollution, over fishing of the seas and climate change.Similarly, it encourages health competition between nations and industries hence ensuring efficiency and effectiveness in the production of commodities. This ensures that goods produced are of high quality and charged fairly. This ensures that consumers are non exploited by producers who may produce counterfeit goods and charge high prices. In the wake of internationalization, productivity is essential so as to meet the international demand for goods and services and remain competitive in the world market.At the equivalent time, nations which experience economic growth are fairly placed and their commodities are highly demanded in the world market. It also ensures that can foxiness with others effectively and in force(p)ly by meeting the required standards as they can afford the current technology and production techniques. Tariffs refers to a tax on foreign goods once they are implicationed i. e. immediately on arrival at the port, the custom officer examines the goods and imposes a levy as per the custom formula.There are various types of tariffs such as an ad valorem tariff which is a percentage of the value of a good while specific tariff is charged on a commodity as per its weight, volume or surfac e, but not to its value. It shows many units of a currency are charged per amount or area. There is also a taxation tariff that refers to a group of levies obligate mainly to kick upstairs income for the government while preservative tariff is mainly oblige to temporarily move on the prices of imports while protecting the local or domestic industries from foreign competition and dumping of unwanted commodities or imports.However, they raise the price of a commodity as per the imposed levy, hence exploiting the consumers of the good or manufacturers who utilize as a raw material, at the same time ii can lead to trade war when it doesnt favor the imposing country. Trade blocks are formed to minimize or eliminate tariffs against trade with each other and impose protective tariffs on imports outside the block, while custom union has a common external tariff as per agreed strategy the member countries divide the revenue from the tariff on commodities entering the union among themse lves.Economic theories argue that tariffs are unnecessary disruption of consumers sovereignty and the rule of free market. They argue that it is unjust to the consumers and slackly unfavorable for a nation to protect a non performing industry, its healthier to let it collapse and give way a new efficient one to grow in its position. Others claim that protective tariffs that assist in protecting infant industries permit them to develop and withstand competition in the international trade once they expand their size.Similarly, tariffs can be used as a political tool to define the boundaries of an independent country as absence seizure of tariffs establishes a free market system with no borders. However, it has been argued that tariffs assist developing countries as they are easy to collect, and these countries lack institutional capability to efficiently raise revenue and sales taxes.Non tariff barriers to trade are ways to avoid free trade regulations such as those of European Union (EU), World trade organization (WTO) etc. hat restrict imposition of tariffs such as anti dumping regulations and counterfeit goods measures, which have similar results as tariffs though imposed in special conditions. Other non tariff barriers are in form of processing or production requirements of a commodity with an import ban imposed on those goods which do not meet the requirement or condition. Some trade barriers are openly allowed in very limited conditions, when reckoned important to safeguard health, safety, sanitation or depletable resources.Non tariff barriers to trade take many forms such as state subsidies that favor an individual or industry hence disadvantaging others subsidizing, therefore becoming more competitive in the market as well as national regulations on safety, health, employment and product classification which fly the coop to discriminate some business while favoring others.Quotas are also form of barriers as an industry cant produce more than the recom mended quantity, hence modulate its production capacity and trade in general. imilarly, foreign exchange control and multiplicity forms a non trade barrier as countries or industries that do not access it cant participate in foreign trade easily, hence it acts as a form of trade barrier as well patents and secure laws that give an individual or industry the ultimate powers to produce a commodity alone, therefore regulating trade. Others include bribery, corruption, unfair customs procedures, restrictive licenses, import bans and restrictive import regimes which act as an obstacle to trade.