A fundamental difference between trading with your neighbor, someone from a different state/territory and someone from a different country

Because the cultural values, traditional traditions, and legislation regulating the various nations differ, there is a fundamental difference between trading with your neighbor, someone from a different territory, or someone from a foreign nation. When neighbors in the same community exchange goods and services, there may be no need to follow certain restrictions (Bloom, Draca & Van Reenen, 2016). Yet, when nations conduct commercial activities, certain variables are taken into account, such as trading legislation, tariffs, and currency exchange rates. and taxes imposed on imports and exports from the government administrators of both parties. Researchers explain the fact that trade between neighbors can be done faster compared to the trade activities carried out between nations and other states or territories (Feenstra, 2015).

Explain how increased international trade helps or harms a country including contemporary or historical examples

The trade activities that are carried out internationally have been ascertained to create a positive impact on various activities undertaken by nations that are involved. Over the years, researchers have illustrated the fact that during trade activities, funds are designated for environmental project development, economic and social improvement, which are aimed at improving operations undertaken by various industries and individuals in various communities (Jaffee, 2014). Despite the notion that there are regulations that have been ascertained to hinder the progress of trading activities in some nations, the positive impacts have been increasingly experienced, especially by nations that have been involved in the trade. Some of the examples in the current market that have been ascertained to have benefited from trade activities include the trade agreement implemented between the Mercosur and European Union (EU) (Pelling, 2016). The trade agreement is explained to have been based on bilateral operations, and it was free, which promoted proper negotiations between carried out to facilitate improved trade activities. The government administrators also supported the agreement, which also assisted in guaranteeing that the process was successful (Francois, et. al., 2013).

Evaluate whether governments should be acting to enable more international trade (e.g through free trade agreements) or to restrict it (e.g. through tariffs on imports)

Government administrators should develop strategies aimed at making certain that trade activities have been promoted in the nation through free trade agreements. There are some instances where trade tariffs and taxes have been imposed, which have made trade activities difficult to carry out in various nations across the globe (Boston & O’Grady, 2015). Based on the fact that there are increased merits of engaging in trading activities over its demerits, it is essential that the process is supported by government administrators. The process will assist in ensuring that political, social and economic activities have been improved in the nation and that the competitive advantage of diverse industries attained in the international market. Researchers have explained that trade activities are essential for any national growth and development processes since it can gain what is not available in the nation, or offer another nation its products that are either in excess or are not being used (Milgrim & Bensen, 2015). Therefore, it is relevant that the government administrators remove any tariffs and taxes that have been imposed on trade agreements by industries and trade parties so as to improve the effectiveness of operations (Cornish, Llewelyn & Aplin, 2013).

References

Bloom, N., Draca, M., & Van Reenen, J. (2016). Trade induced technical change? The impact of Chinese imports on innovation, IT and productivity. The Review of Economic Studies, 83(1), 87-117.

Boston, S., & O'Grady, F. (2015). Women workers and the trade unions. Lawrence & Wishart.

Cornish, W., Llewelyn, G. I. D., & Aplin, T. (2013). Intellectual property: patents, copyright, trade marks & allied rights.

Feenstra, R. C. (2015). Advanced international trade: theory and evidence. Princeton university press.

Francois, J., Manchin, M., Norberg, H., Pindyuk, O., & Tomberger, P. (2013). Reducing transatlantic barriers to trade and investment: An economic assessment (No. 20130401). Institue for International and Development Economics.

Jaffee, D. (2014). Brewing justice: Fair trade coffee, sustainability, and survival. Univ of California Press.

Milgrim, R. M., & Bensen, E. E. (2015). Use of agreements to protect trade secrets in the employment relationship (Vol. 2). Milgrim on Trade Secrets.

Pelling, H. (2016). A history of British trade unionism. Springer.