How trade has impacted the economic condition of India?

India is a developing country where their economy has suffered many changes in the past decade. Being involved in trades with other countries has made their economy grow faster and become a nation more globalized. Moreover,  they are in a process of restructuring their economy in order to elevate their position in the world. 

India has with a very high population, therefore, it is very important for them to be economically interdependent in order to sustain themselves, and for this, they must be involved in trade surplus policies.

Globalization also means foreign companies investing in new territories. India has all the potential to receive multinational companies, adding this a positive effect on their economy and labor situation. Although, several companies already have plants in India.

India still adopted a very restrictive policy as regards foreign equity, capacity expansion for economies of scale and private participation in infrastructure and other strategic sectors (Singh, 2012).

To conclude, trade can positively impact India if they become more open to new markets. For example, they can start by reducing import duties and restriction, and foreign investment barriers. India has all the potential and comparative advantage of multiple resources in order to gain from trades.

European Union Agreement

This agreement was formed with the idea of an economic corporation where all countries, who are involved in the agreement, can be economically interdependent and avoid all kinds of conflicts between each other.

In this agreement there are 27 European countries participating and based on the same continent.

With the European Union, all these countries have increased their stability, prosperity and peace between each other, their standard life of work and personal living has been easier throughout the European continent, and they also have an advantage of sharing the same Euro currency which makes it easier to do tourism, or business such as importing or exporting any kind of good or services with less policy. The European Union key objectives and values is to ensure their democracy, human dignity and right, freedom and equality.

This Economic Union agreement will continue to grow in a democratic and transparent way, with the objective to gain more power to the European Parliament, being authentic to their laws, and increasing the amount of countries to participate. The EU is also trying to sustain economic growth by investing in transportation, energy and research, while also seeking to minimize the environmental impact of further economic development.

Trade Policies for Developing Nations

Trade policies are healthy regimens of trade surplus.  Developing countries are always searching for a way to increase their economy by exchanging product and services with developed countries. There has to be policies in order to make sure that these developing countries build a balanced and structure industry and in a process that will certify an economic growth and benefits. 
If a developing country wants to become more industrialized and be economically interdependent,  they must be involved in trade policies.

For example, Panama is a developing country whose economy has grown significantly in the past year.  Panama is a member of WTO since 2007 and maintains an essentially liberal trade and investment regime, characterized by relatively low tariffs and few non-tariff barrier.

Panama's service-oriented economy acts as an international hub for activities such as maritime transport, distribution services, and banking. In contrast, the production of a number of agricultural and manufactured goods receives assistance through border protection and fiscal incentives (WTO, 2012).

As well, trade policies are methods to protect the nation from dumping activities, subsidies and other types of trade barriers.

To conclude, developing nation must be involved in effective trade policies in order to protect domestic productions, take advantages of developed countries production and become economically interdependent.

Trade War Between China and U.S.

When there is war or a dispute between industrialized or developing nations, due to an increase or decrease on tariff, the most affected are the companies who depends on their daily import/export of products.

On this case, we have the example of China Chicken Market vs. U.S Car Manufacture Industry were both industries have been harmed due to a competition of gaining market share, power and revenue.

We have to understand the value of antidumping as a process that protects domestic markets. We usually see that China has mayor impact in U.S. market and this is because of a lower cost of labor of their products, and consequently, a huge increase in the final cost to U.S. consumer. This in when antidumping processes must be applied in order to protect domestic producers and consumers.

No nation can live in economic isolation; there must be a multilateral negotiation in order to reduce any percussions and increases on tariffs. Both countries, China and U.S., have an absolute advantage on their productions, and they must consider the best option for their consumers and no practices that affect internal consumption should be implemented., market share and revenue can also be obtained this way.

Where there are multilateral agreements between nations and these are respected and applied correctly without utilizing dumping actions, countries will increase their profits by taking completely absolute and/or comparative advantage of their trades.

How unrelated events can lead to unintended barriers to trade?

We live in a world with many and different cultures and in which each country has their own political arrangements and governments and, consequently, their own internal policies and regulations. Political instability, crime, illegal migration, food prices, monetary policies and safety regulation are factors that lead to unintended barriers to trade, affecting various countries and companies who depend on their daily exportation/importation.

There are also other unrelated events such natural disasters or war on terror. In these cases, nations and most important, companies who depends on their daily production should be prepare and have other options worldwide, such as having plants in other countries and not be dependent on their production in only one territory. As an example for this case was the Japanese Earthquake where many companies had to shut down temporarily their plants due to the disaster occur in the country. This affected their market share and most important their revenue.

Along the time, there will be unintended barriers due to so many changes in an economic, cultural and political manner between nations. It is important that companies and countries have multiple options to trade worldwide so that these unintended barriers don’t affect them in a drastically way.

“Globalization Drives Changes for U.S. Automakers"

The payment of healthcare from U.S businesses will always be an important factor and benefit for U.S. employees. On the other hand, it could also negatively affect the comparative advantage of companies when it comes to increase the cost of each vehicle. Meaning that this could put ahead foreign companies in their market share.

In this case, U.S. car manufacture has a disadvantage due to the huge amount of money they are investing in healthcare, rather than investing it in other methods that can give the company the opportunity to grow and be more innovated. They should have a balance between labor costs and pensions they offer to their employees in order to maintain a competitive cost to their customers.

It’s certainly obvious that not only healthcare and high wages affected negatively the comparative advantage of U.S car manufacture. There are a variety of factors that the Big Three are not applying in other to compete with foreign companies such as: innovation on their processes to motivate employees at lower cost, diversification of their products and internal methods in order to be more productive.

We live in a highly competitive age, where everything is about who is the best, who is first, and where each day companies create new policies to increase their market share and revenue. Competition between nations will develop over the time and new policies will be improve and others will be enacted.

To conclude, companies should take advantage of new technologies and be creative in order to maintain their position in todays globalized world.

How open to openness are you?

Today we are in a such globalized and interdependent world where we are exposed to so many goods and services that give each country the opportunity to grow in an economic, cultural and technological way.  Developing countries should take advantage of these variety of goods and services in order to increase their local productions and markets  and become  more competitive.

On the other hand, it is very important that countries, mainly developing countries, establish restrictions and  processes to import and export. They should be aware to supply their own country first (with quality and quantity) in order to export national products, and give the opportunity to local companies to expose their products nationally and worldwide. Also, there are many other factors that must be considered such as technology, prices,  and competition.

To finalize, I am open to openness but there must be processes that should be completed and respected in order to export and import products.