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International Trade and Economic Growth

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             • These industries can increase production with higher economic growth without relating to any export promoting incentives. They will also turn to foreign markets since domestic demand for their products is insufficient. Hence, higher economic growth causes higher exports. .
             2.2 Export-Led Growth Hypothesis .
             • This hypothesis not only implies the presence of positive correlation between export growth and economic growth, but also that the former unidirectionally causes the latter. .
             • Export growth may represent an increase in demand for the country output and thus serve to increase real GNP. .
             • An increase in exports may lossen a binding foreign exchange constraint and allow increases in productive intermediate imports such as raw material inputs and capital goods which cannot be produced domestically and hence result in the growth of output. .
             • Export growth may result in enhanced efficiency and thus may lead to greater output. .
             • The standard neoclassical trade theory suggests that export enhances economic growth due to a better resource allocation of existing resources from the less efficient non-export sector to the higher productivity export sector and improved production efficiency. .
             International trade increases economic growth and welfare, because:.
             1) In many cases domestic market is relatively small and economies of scale cannot be fully exploited. Trade "expands" the domestic market and so improves effectiveness in the economy. .
             2) Trade fosters specialisation and this further improves the effectiveness. .
             3) Trade often stimulates diffusion of new technologies and innovations. New technologies and innovations not only improve the overall effectiveness of production, but also improve standard of living of people. .
             4) Through trade many countries in the world can obtain various resources like oil or iron ore. Without resources there can be basically no production and no growth.


Essays Related to International Trade and Economic Growth

1. The Impact of International Trade

Abstract The goal of international trade is trade goods and services between different countries. If anything at all, international trade increases economic growth and does not account for the major job loss domestically or internationally. Through efficiency, competition, and relationships international trade can increase economic growth and allow for all countries to benefit from it. ... Improvement of Competition International trade can help to improve competition which is good for the economic market. ... Relationships International trade can produce global relationships and in return co...

  • Word Count: 759
  • Approx Pages: 3
  • Has Bibliography
  • Grade Level: Undergraduate

2. INTERNATIONAL TRADE

One of the commonly accepted economic propositions is that free trade is a determinant and creator of economic growth. ... Description While there is no conclusive evidence of a casual link between world trade and economic growth, different researchers have demonstrated that there exists a strong correlation between world trade and economic growth. ... World trade grew 14 times over a 45-year period i.e. (1950-1995) while the world economic output grew 5.5 times over the same time horizon. Trade Patterns Evaluating the dimensions of degree of liberalization, and the trade commodity com...

  • Word Count: 596
  • Approx Pages: 2
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3. International Economic Institutions

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  • Word Count: 2051
  • Approx Pages: 8
  • Grade Level: Undergraduate

4. JAPAN'S ECONOMIC DEVELOPMENT

Without the creation of the industrial economy during the Meiji Japan this economic growth after postwar could have not happened. ... Japan export values also began to increase on the international market. All of this leading to an eventually import of international technology. ... What was the government involvement in the economic growth during this period of time? ... An example would be the organization MITI (Ministry of International Trade and industry. ...

  • Word Count: 2803
  • Approx Pages: 11
  • Grade Level: High School

5. International Trade

Basis for International Trade a. What is International Trade International trade is when countries exchange goods and services with one another. ... International trade and finance link world economics. ... International trade is often at the center of economic policy. ... Rising from the ashes of World War II, Japan achieved an economic growth "miracle" that made it the envy of many other countries. ...

  • Word Count: 1210
  • Approx Pages: 5
  • Grade Level: High School

6. Developing Countries and the Global Economy

To explore the role of global integration in promoting the economic growth of the developing economies 2. ... During the last three decades China is able to maintain very high rate of economic growth. Economic integration in terms of financial liberalization and open trade policy largely account for such a phenomenal growth and make them one of the most attractive destinations for foreign direct investment. ... International trade facilitates in the emergence of newer industries to accommodate the increased demand from global economies. ... (International monetary fund. 2003). 5. ...

  • Word Count: 2450
  • Approx Pages: 10
  • Has Bibliography
  • Grade Level: Undergraduate

7. The Global Impact of International Business

Hence, economic growth is likely to be a positive influence of international business to the lives of the people. ... International trade has allowed people to learn of the economic shortages that are experienced in the world of business. ... International trade has influenced the daily life of people politically. ... International business has helped countries to experience rising living standards due to increased incomes and large economic growth. ... The cause of this economic growth is availability of competitive industries, increased productivity and efficiency in the business world. ...

  • Word Count: 1266
  • Approx Pages: 5
  • Has Bibliography
  • Grade Level: Undergraduate

8. The International Monetary Fund

The International Monetary Fund (IMF) is an international organization that consists of 188 countries working to promote global monetary partnerships, advocate high employment and sustainable economic growth, secure financial stability, reduce poverty around the world, and further international trade. ... The IMF's job is to uphold global growth and economic stability by giving aid to developing countries so they can achieve macroeconomic stability and reduce poverty. ... The IMF was also intended to help mend the international economy to prevent economic downfall, since the Great Depres...

  • Word Count: 524
  • Approx Pages: 2
  • Grade Level: Graduate

9. Companies and International Expansion

These statistics point out that if a firm is seeking competition and growth, it cannot ignore the opportunities that the international marketplace offers. ... Hamburg (2012) stated that the main drivers of economic performance and technological advance are innovation and talent. ... For example, there may be a slight decrease in the demand for a certain product in the US, while in Brazil it experiences a continuous growth. ... Kiellor (2009) stated that the International Trade Company in Valencia would be out of business if it had not gone international when the domestic market was going immen...

  • Word Count: 660
  • Approx Pages: 3
  • Grade Level: Undergraduate

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