International Trade

International Trade

In Business by libertythebest

the worlds trading nations have become increasingly interdependent, from an economic and political viewpoint, especially during the post world war 2 era

The main factors that show the world has become increasingly interdependent are the formations of trading organizations or unions such as

Transpacific trade partnership TPP

World trade organization

European union

Common wealth

United nations

United states of America

African Union

Southern Africa Development Union

All these organizations are there to facilitate the negotiations, trade policies, regulations in between neighbor countries, regions and the world at large hence increasing interdependency. Analyzing the rate of trade in between countries also shows each country can no longer go without the other both economically and politically, alliances have been forged, past enemies have forgiven each other and today boarders are now just lines on the map otherwise the world has become connected in almost everything we do.

by international competitiveness? how does this concept apply to a firm, industry, and a nation

International competitiveness is when a firm, industry or nations product, service, or any economically beneficial output meets specified properties and attributes of accepted quality of a international standards

There is a board that certifies products world wide with accordance to agreed specifications called the ISO certification, which means international standards organization, this board serves as a hallmark of quality assurance and adherence to the strictest and rigorous quality assessment in the world, that the world wide market can accept. Other factors of competitiveness are favorable prices, cheaper transportation, durable and longer guarantee on products, services or any market output.

How does the comparative cost concept relate to a nations production possibilities schedule? illustrate how differently shaped production possibilities schedules give rise to different opportunity costs

The comparative cost concept relates to a nations production possibility schedule as it denotes which product is cost effective at what period and what to produce at a certain period hence impacting the production possibility curves. This gives rise to differently shaped schedules as different regions/countries have different costs on different outputs, hence produce certain products at a certain time with variance according to cost effective mechanisms. Therefore giving rise to different opportunity costs.

With a given level of world resources, international trade may bring about an increase in worlds output,

By analyzing specific efficiency in certain regions of the world in producing a specific product with certain specific resources, the world can generally improve its output hence increasing the worlds output. This phenomena is justified by letting a specific region or country do what it does best in producing a certain item or output and import what it cannot produce as efficiently as another region would do,  hence when all the regions take this criterion into consideration, each would result in overall efficiency and increased output on a global scale, resulting in more international competitiveness, standards and increased international trade.

Do recent world trade statistics support or refute the notion of a product life cycle for manufactured goods

Recent world statistics partially support and refute the generally accepted life cycle of manufactured goods, and on the long term, the forecast is product life cycles will become more compact and agile as the world demands faster production life cycles, faster consumption, and easier product replacement and development but at the current rate of production and consumption, it can be concluded that the recent statistics now refute the old product life cycle, the whole cycle needs to be updated for a more agile and faster cycle that is both flexible and long term durable.

Two explanations for international trade patterns, one for manufacturers and another for primary (agriculture goods)

The biggest difference between these two main trade patterns is that manufactured products depend on technological advancements and manufacturing production and capacity where as Agriculture primarily depends on natural resources such as type of soil, regional conditions such as amount of rain, atmospheric/weather attributes. These two main trade patterns are different in many ways but interlinked on certain products that depend on each other. A country which is generally based on agriculture will focus more on farming and less on manufacturing as it will be better at the former than the latter, hence maximizing its own efficiency and attracting to attain manufactured goods by importing them when it exports its own agriculture output, therefore explaining the two main trade patterns and balancing world trade. Making sure resources and policies are set in place to evaluate and monitor output to increase efficiency and maximize on these two main trade patterns.