Should there be limits on international trade

SHOULD THERE BE LIMITS ON INTERNATIONAL TRADE Name: Grade Course: Tutor’s Name: (30 June, 2011) Should there be Limits on International Trade Introduction International trade is the capital goods and services are exchanged across international borders or territories. In most of the country, it is a representation of the gross domestic product (GDP). International trade has been there for quite a long time and has lately bee in a rise through economic, social and political influence. The industrialization, advanced transportation, globalization, multinational corporations and outsourcing are the major force that has been driving international trade system (Harrigan, 2003). Through the rise these effects lately, it has been very hard to limit the international trade. Therefore, through the numerous advantages that the system of international trade has to the global growth, there should be no limit to the international trade. There various things that can make international trade not to be put into limit. Reasons why there should be no limits on international trade Globalization Due to the ongoing trade liberalization in the world that has brought about declining of communication and transportation, cost has increased sharply tradable goods portion of world output especially in the past fifteen years. Similarly, a veritable explosion of the e-based connectivity across the world that came into being from 1995 has increased the need for international trade (Haring, 1998). Therefore, the emergency of the IT that is entirely new global outsourcing industry leads to networking and provision of service around the world. The effect of this then is expansion of trade in both goods and services that has increased global growth dynamic. In the global economy, there is no country that is self-sufficient. Therefore, international trade has helped each to be involved in selling what they produce in different levels. This helps the country to acquire what they do not produce also and ensure that they produce more efficiently in some economic sector than other partners. According to the conventional economic theory, trade promotes economic efficiency through provision of wider variety of goods at lower costs. This is because the countries are capable of specialization, economies of scale and other related comparatives advantages (Andrew et al 2003). Despite of the number of criticism that international trade has had as some quoted it as a source of disruption to global economy and social forces sine it contributes in changing the condition of wealth distribution within the national economy through changes of the prices and wages, international trade has defy all odds that may leads to its limitation. The globalization of production is related to globalization of trade. Both of them cannot function. That international trade has been in the arena for so many years dating during the ancient trade routes such as Silk Road that testify this. However, international trade increased significantly as the time goes by playing a more active role in the economic life of nations and regions (Howse, 2005). This process has been affected significantly through technical changes that have been experienced in the transport sector. The scale, volume and the effic...