GATT came into existence in with the intentions of providing the world with a forum that encouraged international trade between its member countries. GATT did so mainly by encouraging member countries to reduce trading tariffs and by providing guidelines for international trade.
The concept basically refers to a migration of features across borders. The transcending forces belong to the fields of economics, politics, technology and even culture.
However all issues are important, a pivotal role is played by the economic modifications generated by the forces of globalization, and this is simply because a country's economy, influenced by the global context, will generate significant impacts upon the national stability and growth.
The changes brought by globalization are next to countless, but the most relevant ones in terms of economics, are the opening of borders and the liberalization of markets.
These modifications led to the implementation of various classical economics principles, such as Adam Smith's suggestions of reduced political interventions within the market place or David Ricardo's theory of comparative advantages Hunt, Most importantly however, it led to the creation of open International Trade of commodities, capitals, technologies or the migration of the human resource.
The field of international trade has captured the attention of numerous scholars and proof of this stands the wide palette of writings on the issues of international trade.
New features emerged and new concepts were developed. Intra-industry trade and inter-industry trade are two of these new terms.
This paper is focused on presenting the two concepts and demonstrating how they apply in the cases of the trade operations conducted by the European Union. Intra and Inter-Industry Trade The specialized literature on the topic of inter- and intra-industry trade is relatively reduced, generally because the concepts are new.
An analysis of the available resources will however help the reader form a better idea of the most stringent issues. Inter-industry trade refers to the international exchange of different products, whereas intra-industry trade usually involves trade in differentiated products and intermediate goods," say Jon Kendall, Donghyun Park and Park Donghyump.
Augustin Kwasi Fosu, Saleh M. Nsouli and Aristomene Varoudakisp. They define the concepts as follows: In this order of ideas, they find that intra-industry trade is more beneficial for technological developments than inter-industry trade.
The explanation is based on the fact that the country will better respond to imports of technology when they come from the same sector, even if another country, as opposed to different sectors, even if in the same country.
In the case of intra-industry trade, the products imported are highly similar to those already existent within the national market generating competition and constituting substitute productswhereas with inter-industry trade, the goods belong to different categories.
This then leads to the idea that the intra- and inter-industry trade models are based on different principles. Following this line of thoughts, intra-industry trade is based on the creation of economies of scale, whereas inter-industry trade is based on the principles of exchange forwarded by the theory of the comparative advantage Forstner and Balance,p.
Then, another specification is that intra-industry trade requires the existence of a free international market, and this necessity is more intensely felt than in the cases of inter-industry trade.
Also, intra-industry trade, given that it exchanges similar products, feels a higher need for performance, requiring as such specialization Meyer,p. Finally, the last specification refers to a similarity that the two models share - their development is based on increased specialization, which will generate positive effects upon the national economy.
The effects will however differ, as Nigel Grimwade explains in his book International Trade. The author states that inter-industry specialization leads to increased real incomes.INTRODUCION. This essay provides an overview of the barriers to international trade faced by economies today with examples of barriers .
Main theory Mercantilism, the first theory of international trade, asserts that trade is a zero-sum game and thus countries benefit from trade by maintaining a trade surplus—export more and import less.
Therefore, it advocates government intervention to limit import and. Three Essays on International Trade Davide Sala Thesis submitted for assessment with a view to obtaining the degree of Doctor of Economics of the European University Institute Florence, June EUROPEAN UNIVERSITY INSTITUTE of the industry where such changes occurs.
The International Trade Agreement (Nafta) - Thanks to an increasing growth in the trading sector of the economy, people can enjoy the benefit of having the better products at the lower price; however, there is a substantial of other elements that countries can trade.
Sample short-answer test inquiries – Lecture 3 Globalization All inquiries must be answered every bit far as possible in relation to your chosen organisation and/or its industry sector as defined in your ‘organization/ industry profile’. International Trade Essay. By Lauren Bradshaw.
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