...Vidit Shah OVER VIEW Composition & Direction of Foreign Trade Foreign Trade Policy India’s Foreign Trade Policy Foreign Trade Policy 2015 – 2020 3 05/01/2016 Composition Of Foreign Trade • Composition of foreign trade means major commodity or sectors in which India is doing export and import. India is a very old participant in world trade. Its participation have been promoted by the opening of Suez Canal and speedy development of the ship building industry supplemented by the spread of industrial revolution in Europe and fast expansion of Indian railways. Composition Export Fuels, Capital Goods, Chemicals, Food Grains, Petroleum Products, Capital Goods, Pearls and Precious Gems, Iron and Steel Fertilizers, Edible Oil 05/01/2016 Import Manufactured goods textiles , Gems and Jewellery, Handicraft, Light machinery etc. 4 IMPORTS It refers to goods that we buy from other countries. At times of independence India was an agrarian economy. Partition of our country has brought food shortage because wheat growing regions vested with Pakistan. Hence India need to import in large quantities, food , cotton jute. Etc With development of economy over these days, there occurred changes in composition of imports. The development required setting up of industries, modernization of agriculture etc. Capital goods like machinery, chemicals, fertilizers ,metals, minerals petroleum products etc. are imported . ...
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...Trade policy A ‘‘‘commercial policy’’’ (also referred to as a trade policy or international trade policy) is a set of rules and regulations that are intended to change international trade flows, particularly to restrict imports. Every nation has some form of ‘‘‘trade policy’’’ in place, with public officials formulating the policy which they think would be most appropriate for their country. Their aim is to boost the nation’s international trade. Example ‘‘‘European Union’’’, Mercosur committee etc. The purpose of trade policy is to help a nation's international trade run more smoothly, by setting clear standards and goals which can be understood by potential trading partners. In many regions, groups of nations work together to create mutually beneficial trade policies. Trade policy can involve various complex types of actions, such as the elimination of quantitative restrictions or the reduction of tariffs. According to a geographic dimension, there is unilateral, bilateral, regional, and multilateral liberalization. According to the depth of a bilateral or regional reform, there may be free trade areas (wherein partners eliminate trade barriers with respect to each other), ‘‘‘custom unions’’’ (whereby partners eliminate reciprocal barriers and agree on a common level of barriers against no partners), and free economic areas (or deep integration as in, for example, the European Union, where not only trade but also the movement of factors has been liberalized, where a common...
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...The Ecuadorian Rose Industry snowcapped volcanoes that rise to more than 20,000 feet. The bushes are protected by 20-foot-high canopies of plastic sheeting. The combination of intense sunlight, fertile volcanic soil, an equatorial location, and high altitude makes for ideal growing conditions, allowing roses to flower almost year-round. Ecuador apparently has a comparative advantage in the production of roses. Ecuador's rose industry started some 20 years ago and has been expanding rapidly since. Ecuador is noW the world's fourth largest producer of roses. Roses are the nation's fifth largest export, with customers allover the world. Rose farms generate $240 million in sales and support tens of thousands of jobs. In Cayambe, the population has increased in 10 years from 10,000 to 70,000, primarily as a result of the rose industry. The revenues and taxes from rose growers have helped to sophisticated pave roads, build schools, and construct irrigation systems. Maria works Monday to Saturday, and earns $210 a month, which she says is an average wage in Ecuador and substantially above the country's $120 a month It is 6:20 AM, February 7, in the Ecuadorian town of Cayambe, and Maria Pacheco has just been dropped off for work by the company bus. She pulls on thick rubber gloves, wraps an apron over her white, traditional embroidered dress, and grabs her clippers, ready for another long day. Any other time of year, Maria would work until 2 PM, but it's a week before Valentine's...
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...Table of content 1. Executive Summary page 2 2. Introduction page 2 3. Present Trade Position page 3 3.1 Current Account Deficit page 3+4 3.2 Net Foreign Debt page 4+5 4. Australia’s Trade Policy page 5 3.4 Trade Liberalization and Protection in Australia page 6 3.5 The Australian Dollar page 6 3.6 SWOT (Strength, Weakness, Opportunities Cost and Threat) Analysis page7 3.7 CBA for Structural Reform page 8 4. Conclusion page 9 5. Recommendation page 9+10 6. Reference page 11 1. Executive Summary The purpose of this report was to analysis present of Australia’s trade position and prepared a plan for improving Australia’s position. Specific objectives were to identify key economic problems in term of trade and current account. Problems and solutions were found in the trade and current account though Carbon tax with high Australian dollar is likely to force radical structural reform on the economy and the manufacturing. The report recommends using structural reform to improve Australia’s trade position. Furthermore, Carbon tax initially acts against competitive international trade. In the long term, it can offer solutions to the two sector economy. 2. Introduction Since the onset of the East Asian economic and financial crisis in late 1997 the Australian economy has continued to record strong growth...
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...A Report On “Impact of protectionist trade policy on the domestic industry and economy” Course Name International Economics Course Code FIN: 2210 Submitted To: Shaikh Masrick Hasan Lecturer Department of Finance Jagannath University Submitted By: Sohel Rana On behalf of Group-06 2nd Year 2nd Semester, 6th Batch Department of Finance Jagannath University Date of Submission: 22-02-2014 Group Members SL. NO. | NAME | ID NO. | 1 | SOHEL RANA | B 110203076 | 2 | NURNOBY RAHMAN | 115234 | 3 | UZZWAL HALDER | B 110203046 | 4 | IMAM HOSSAIN | B 110203026 | 5 | FARHANA BHUIYAN | B 110203106 | 6 | SUMAIYA YASMIN | B 110203104 | 7 | HAFIZUR RAHMAN | B 110203025 | 8 | FATEMA AKTER | B 110203006 | 9 | KHALILUR RAHMAN | B 110203055 | 10 | TOHIDUL ISLAM | B 110203024 | Letter of Transmittal Shaikh Masrick Hasan Course Coordinator Money and Banking Dept. of Finance Jagannath University Subject: To submit a report on “Impact of protectionist trade policy on the domestic industry and economy” Sir With a great respect, we are informing you that we have prepared a report on “Impact of protectionist trade policy on domestic industry and economy.” We feel great pleasure for submitting this report to you, which will...
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...apply trade policies yet they know that gains from trade is enhanced by free flow of goods and services into a nation? To protect domestic industry during its infancy period The government puts up policy for the benefit of the local industry. It protects the infant industries until when they can meet foreign competition, attain economies of scale and reflect the nation’s long-run comparative advantage. However, a nation may have potential comparative advantage in a commodity, but because it lacks technology and the initial small level of output, the industry will not be in a position to successfully compete with foreign firms unless government protects it. To protect labor intensive industries who employ unskilled workers In industrial countries protection to labor intensive industries is very crucial, as the low–wage workers would have great difficulty in seeking alternative employment if they lost their present jobs. To encourage the industry and confer greater external economies on society External economies refers to benefits to society at large, for instance, by training workers who then leave to work in other industries. In that case, there is likely to be underinvestment in the industry, because the industry does not receive the full benefit from its investment. Thereby, restriction of imports is put in place to encourage the industry and confer greater external economies on the society. To protect industries important to the national defense Trade restrictions...
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...1 POLICY REFORMS AND TRADE LIBERALIZATION IN BANGLADESH I. MAIN FEATURES OF BANGLADESH ECONOMY GDP and its composition. During the fiscal year 2002-2003, the GDP of Bangladesh stood at around $52 billion. The growth rate of GDP has picked up in recent years. Thus, during 1980-90, it grew annually at 3.7 per cent on average, barely above the population growth rate. On the other hand, it approached an average annual rate of 5 per cent during 1991-2002. The relative shares of consumption and savings in the GDP witnessed modest changes during this period. In 1991, consumption accounted for over 86 per cent of the GDP, while in 2002 it fell to nearly 82 per cent. Correspondingly, the shares of savings in GDP rose by a quarter over this period. During the same period, the investment/GDP ratio increased from 17 per cent to 23 per cent. Within this, the ration of public investment to GDP remained stagnant around 7 per cent, while that of private investment increased from 10 per cent to 17 per cent of GDP. Changing sectoral distribution. As indicated by changes in the sectoral distribution of the GDP, the economy of Bangladesh underwent important structural transformations over the last three decades. At independence in 1971, agriculture was the dominant sectors accounting for over 55 per cent of the total GDP. The industrial sector was small, contributing less than 10 per cent of the GDP. The services including transportation and power accounted for the rest of the GDP. The...
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...Name: Institution: Course: Tutor: Date of submission: Trade Policy and Developing countries A number of developing countries have enabled the facilitation of their economies to develop recent centres of development internationally. International trade has enabled them to make an effective way to generate funds as a result of making trade. However, there has been uneven development and especially the poorest countries have managed a lesser share in the world economy. Many of these poor countries have been unable to make appropriate use of the markets that are opening around them or even try to balance losing tax revenue by developing ways of taxation, since the financial stability and internal structures of these countries are lacking in some ways. The upholding of barriers to trade and other protective measures continues by the need to keep the existing home control structures (Krueger, 45). The large numbers of developing countries highly dependent on agriculture have slow productivity rate and the trade barriers remaining are more than those for industrial goods. Industrial production has witnessed more investment by the emerging economies; this has facilitated the development and it has seen exports grow twice as much as agricultural exports, which comprise 80 percent of the total volume of exports of developing countries. It is necessary for developing countries to take free trade services and labour mobility (Colin, 42). Developing countries should develop their...
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...International Trade Theory and Policy Institution Date The aim of this article is to discuss a number of issues associated with the international trade theory and policy. First, the motives, nature and purpose of the original General Agreement on Tariffs and Trade have been discussed in this article. Also, the extent to which this purpose was achieved in the first 6 rounds of negotiations has been discussed. The reasons that drove President Reagan and his administration to propose the eighth round of negotiations are also featured in this article. Lastly, the reasons why there is still a significantly steep “effective” tariff hampering global free trade, despite fairly low tariffs on final goods have also been discussed in this article. The General Agreement on Tariffs and Trade (GATT) was formed in1947. This was after the United Nation conference whose aim was to create the International Trade Organization failed. The GATT came to an end in 1993. In 1995, the (World trade organization WHO) replaced GATT. GATT principal purpose was to boost fair trade by reducing and taking control of the trade tariffs amongst its member countries. In addition, it was responsible solving any trade disputes between the member countries. Before it ended, The GATT had become interested in the intellectual property rights and the effects of global trade on the environment. The General Agreement on Tariffs and Trade had a provision known “as the most favored nation status.” GATT refers...
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...Diplomacy and International Relations – Spring Trimester 2010 Topic: Cameroon’s Trade and Development Policies: Analysis and recent Tendencies Student: ANYANGWE Fombang Claudius Course: International Trade and Development: 21st Century Issues Instructor: Prof. Dr. Gustavo Olivares Abstract: Cameroon was one of the few privileged countries to join the World Trade Organization (WTO) in 1995 as a founding member while establishing a Common External Tariff (CET) to enhance intraregional trade under the CEMAC economic bloc. This accession came at a time when Cameroon was implementing drastic structural reforms to handle the scourge of the great economic depression of the 1990s that spread as wildfire across most African countries. In struggling to advance the IMF-World Bank proposed structural reforms of economic liberalization and privatization, WTO was seen as an appropriate panacea for the devastated economic situation by providing a multilateral trading system where Cameroon could gain greater market access for its products and attract foreign direct investment. This paper analyzes the trade and development policies that Cameroon has adopted within the framework of the WTO and other economic partnership agreements in addressing the developmental and economic problems facing Cameroon. The study explores Cameroon’s past and ongoing negotiations geared towards the objectives for an open trade regime. The study concludes that despite the loopholes in WTO that disfavor less...
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...Greece and Brazil: A Comparison of the Costs and Benefits Associated with Free Trade Policies and Restrictive Trade Policies. Introduction The countries of Greece and Brazil have experienced unique situations in both economic conditions. These situations brought about significant changes in policy, which resulted in several events having both negative and positive impacts on each country’s development, and most importantly, international trade. This paper will also examine the economic structure of both Greece and Brazil, while identifying the similarities and differences of these structures. Greece became a member of the European Union in the 1980’s and participated in the free trade environment that was and is a representation of the EU. Brazil, on the other hand, practices protectionism which also had both a negative and positive impact on the country. This paper looks at both the positive and the negative impacts of each country’s trade policies and practices. Historical Insight A Brief History of Greece Greece (The Hellenic Republic) is located on the far south of the Balkan Peninsula, and consists of over 1400 islands, the largest of which is Crete, and the capital is Athens. Greece has a population of around 11 million people as at 2013, according to the World Bank. Its GDP is 242.2, GDP growth -3.3% and inflation is -0.9% as also confirmed by the World Bank in 2013, see Table 1. Greece has a parliamentary democratic system, the main political parties are ...
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...BLC Essay 2 Isidro Morales describes US trade policies towards Latin America as a ‘neo-liberal corporate-led agenda’. Discuss the validity of his claim, as well as the desirability of extending the model of regional integration preferred by Washington to all of the Americas. “Since trade ignores national boundaries and the manufacturer insists on having the world as a market, the flag of his nation must follow him, and the doors of the nations which are closed against him must be battered down. Concessions obtained by financiers must be safeguarded by ministers of state, even if the sovereignty of unwilling nations be outraged in the process. Colonies must be obtained or planted, in order that no useful corner of the world may be overlooked or left unused.” Woodrow Wilson, President of the United States, 1919 Madalina Daniela Costache Robert Ibsen British and American Studies – 2XBF November 8th 2013 Number of words: 938 With the emergence of the Washington consensus, the US foreign policy shifted towards a neoliberal model in order to deal with the pressures incited by globalization. Neoliberal theory argues for the development of a free market economy where there is a high degree of free individual choice, and which achieves efficient economic performance by reducing the state’s intervention solely to “defining property rights, enforcing contracts, and regulating the money supply” (Kotz 2000). This essay argues that, as Morales claims, the US does pursue a...
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...Trade leveraging policy to push exports on anvil Our Economy Bureau 3 September 2004 New Delhi: A day after doling out sops to exporters, commerce and industry minister Kamal Nath today said that the government would bring out a trade leveraging policy apart from a special package for textiles, tea and coffee sectors to further push up exports. "India is one of the few countries in the world which will have incremental growth in its human skill resources in the coming years. We have never leveraged trade. I am going to work on trade leveraging policy. We have to see trade not only as a foreign exchange earner but also as a net employment generator," Nath said at a FICCI seminar on the foreign trade policy. Since the multi-fibre agreement is coming to an end in 2005, the minister said that the government would look at the entire textile chain and come out with a textile policy. Nath said that his ministry would also organise a seminar on textiles in the next one month to discuss issues emerging in the post quota regime. Stating that the days of government subsidising inefficiency were over, Nath said that the industry would have to match the strength of its competitors in order to achieve a quantum jump in its exports. He said issues like the inverted duty structure needed to provide a level playing field to the domestic industry particularly under regional and bilateral agreement would be addressed soon. The minister also admitted that infrastructure was the weakest...
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...instruments of trade policy like tariffs, subsidies, import quotas, voluntary export restraints, local content requirements, administrative polices and antidumping policies. We will begin with tariffs. They are taxes levied on imports that effectively raise the cost of imported products relative to domestic products. They provide protection to domestic producers, force consumers to pay more for certain imports, reduce the efficiency of the world economy and the most important one increase government revenues. Secondly subsidies, they are government payments to domestic producers to help them in two ways. First one is to compete against low-cost foreign imports and second one to gain export markets, but they protect inefficient and excess production. Thirdly import quotas, they directly restrict the quantity of some good that may be imported into a country. And...
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...nterII. 무역정책 1. 무역정책의 수단 무역정책: 국가간의 재화와 서비스의 흐름에 직접적인 영향을 미칠 목적으로 도입되는 정책 산업정책: 소비, 생산, 고용의 산업간 배분에 영향을 미칠 목적으로 도입되는 정책. 하지만 간접적으로 무역의 흐름에 영향을 미치게 된다., 2. 무역정책의 수단 1. 수입경쟁시장의 보호수단 가격규제 관세(tariff): 가장 투명하고, 왜곡이 적은 보호수단 종량세(specific tariff), 종가세(ad valorem tariff) 최소가격 제한 반덤핑 법, 가격지지 협정 등 물량적 규제 수입쿼터(import quota) 수입면허(import license) 쿼터 부과로 수입품의 공급이 축소하고, 수입품의 가격이 상승하면 수입을 할 권한 을 가진 사람의 소득은 증가하게 된다. 이를 쿼터 지대라고 부른다. 관세는 이러 한 지대를 정부에 귀속시키지만 물량적 규제는 그 방법에 따라 지대의 일부, 혹은 전부를 외국의 공급자에게 귀속시킬 수 있다. 이러한 면에서 수입억제효과가 동일 또한 물량 할 경우에도 물량적 규제는 관세보다 많은 후생손실을 초래하게 된다. 적 규제는 국내 공급자의 시장지배력을 증가 시키거나 외국 공급업자와의 담합을 초래함으로써 소비자에게 관세보다 더 큰 피해를 주기 쉽다. 또 수출국의 기술진 보가 있거나 국내 수입시장이 확대될 경우 관세 하에서는 수입량이 자동적으로 증 가하지만 물량적 규제 하에서는 이것이 불가능하다. 왜곡시키지만 물량적 규제는 이를 마비시킨다. 즉 관세는 비교우위의 작동을 이에 더하여 쿼터는 수출국간 차별 을 가져오기 쉬우며, 행정절차와 감독이 매우 복잡하고, 로비와 부패를 유발한다. GATT 명시적으로 수입쿼터를 제한하고 있으나, 많은 예외 인정 외환규제(exchange control) IMF 8 조 규제사항 국산화비율 규제(local content requirement) 국산화 비율이 일정 수준에 미달하면 수입품으로 간주 판매금지 혹은 높은 관 세 부과 참고: 스크린 쿼터 자율적 수출규제(VER, voluntary export restraint) 협정을 거부할 경우 명시적인 보호정책을 취할지 모른다는 위협을 배경으로 수 출국이 수출량을 동결하거나 축소하겠다는 협정을 맺도록 외교적으로 유도. 쿼터와 같은 효과를 가지면서 지대를 전부 외국 기업에게 귀속시킴으로 가장 비효율적인 수입규제 수단으로 평가. 1 2. 수출시장의 보호 수출보조금 내수가격을 증가 시켜 소비자에게 피해를 주며 외국시장 공급가격 을 하락 시켜 교역조건을 악화시킨다. 대부분의 경우 이러한 피해가 수출업자 의 이익을 상회함으로 경제학은 이를 자국의 후생을 자발적으로 감소시키는 우 매한 행위로 간주한다. GATT 규제사항. 자율적 수입확대(VIE, voluntary import expansion) 협정을 거부할 경우 보복정책을 취할 것이라는 위협을 배경으로 수입국이 수입량 을 확대할 것이라는 협정에 조인하도록 유도 ...
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