Definition of International Trade
International trade is a trade made by residents of a country with a population of other countries on the basis of mutual agreement. Occupation in question can be between individuals (individuals with the individual), between individuals with the government of a state or government of a country with other governments.
According to Amir, M.S. an economic observer, when compared with the implementation of international trade is very complicated and complex. Such complexity is partly because of political boundaries and the state that could hinder international trade, such as cultural differences, language, currency, estimates and scales, and trade law.
Policy, International Trade Policy
These actions include:
1. fare (quote) /Tariff
Tariff is the kind of taxes imposed on goods imported. Specific tariff (Specific Tariffs) imposed as a permanent burden on goods imported units. For example $ 6 for every barrel of oil). Tarifold valorem (od valorem Tariffs) is a tax levied on the basis of a certain percentage of the value of goods imported (for example, 25 per cent tariff on imported cars). In both cases the impact of the tariff will increase the cost of shipping goods to a country.
2. Export Subsidies
Export subsidies are paid a certain amount to the company or individual that sells goods to other countries, such as tariffs, export subsidies can be a specific shape (a specific value per unit of goods) or Od valorem (percentage of export value). If the government provides export subsidies, export the sender, the sender will export goods to the limit where the difference between the price of domestic and foreign price equal to the value of the subsidy. The impact of export subsidies is to increase the price of the exporting country, while in countries that import prices fall.
3. Import restrictions
Import restrictions (import quotas) is a direct restriction on the number of items may be imported. These restrictions are usually enforced by giving licenses to several groups of individuals or companies. For example, the United States to limit imports of cheese. Only trading companies allowed to import certain cheeses, each given quota to import a certain amount each year, must not exceed the maximum amount that you have set. The amount of quota for each company based on the amount of cheese that is imported in previous years.
4. Voluntary export restraints
Other forms of import restrictions are voluntary restraints (Voluntary Export Restraint), which is also known to control voluntary agreements (Voluntary Restraint Agreement = ERA).
VER is a limitation (Kuota0 on trade imposed by the exporting country rather than importing. The most famous example is the restrictions on car exports to the United States conducted by the Japanese since 1981.
VER is generally conducted at the request of the importing countries and exporting countries agreed by preventing trade restrictions other. VER has the advantages of political and legal policy tools make it the preferred trade in recent years. But from an economic standpoint, voluntary export control exactly where the import quota licenses given to foreign governments and therefore very expensive for the importing country.
VER is always more expensive for the importing countries compared with a tariff that limits imports by the same amount. What is the difference between government revenue in the tariff to be (rent) obtained in the VER foreign parties, so that the VER actually causing harm.
5. Local content requirements.
Local content requirements (local content requirements) is an arrangement which requires that certain parts of the physical units, such as the U.S. oil import quota ditahun 1960s. In other cases, the requirements specified in the value, which requires a certain minimum share price starts from domestic added value. Local content provisions have been widely used by developing countries who switch beriktiar from manufakturanya base assembly to the processing of materials (intermediate goods). In the United States a bill for the local content of vehicles proposed in 1982 but until now berlum enforced.
6. Export credit subsidies.
Export credit subsidy is a kind of export subsidies, it's just his form of the loan subsidy to the buyer. United States as well as most countries, have the a government agency, export-import banks (Export-import banks) are directed to at least give loans-subsidized loans to help exports.
7. Government Control (National Procurement)
Purchases by the government or companies are strictly regulated can be directed to the goods produced in the country even though the goods are more expensive than the imported. Classic example is the European telecommunications industry. Requires states basically free European trade with each other. However, the main buyers of the equipment is telekonumikasi telephone companies and European companies are up to now government owned, domestic suppliers even if the supplier is put on a higher price than other suppliers. The result is little trading in the European communications equipment.
8. Bureaucratic obstacles (Red Tape Barriers)
Sometimes the government wants to restrict imports without doing it formally. Fortunately or unfortunately, so easy to wrap the health standards, safety, and customs procedures in such a way that is in trade barriers. The classic example is the French Government Decree of 1982 which requires all video cassette recorder through a small customs offices in Poltiers which effectively limit the number realiasi until relatively very small.
Economic globalization is the global economic life that is open and does not recognize territorial boundaries, or between local cantonal one with some other regions. Here the world is considered as a unit that can reach all areas quickly and easily. Side of the trade and inventory to the circumstances of capitalism liberalization blood so that all people are free to try just about anywhere and anytime in this world.
Economic globalization is a process of economic activities and trade, that countries around the world become a market force that increasingly integrated with the territorial borders unimpeded state. Economic globalization requires the elimination of all restrictions and barriers to capital flows of goods and services.
IMPACT OF GLOBALIZATION ON INTERNATIONAL TRADE
- Global production can be enhanced
- Increasing prosperity in a country community.
- Broadening the market for domestic products.
- Can obtain more capital and better technology.
- Provide additional funds for economic development.
- Since the development of foreign trade system that becomes more free, so as to inhibit the growth of industrial sector.
- Could exacerbate balance of payments.
- Financial sector increasingly unstable.
- Exacerbate the process of long-term economic growth.