Foreign Trade Policy

The currency of India has been falling much recently against the dollar, as the risk adverse global investors start getting worried about the deficits, as efforts are being made by the central bank to stem the slide of the currency. According to Fact Set data, the rupee hit 54.44 against the dollar, in December, 2011. According to the analyst, it is expected that the rupee may continue to weaken further, as Eurozone jitters dovetail with the raising worries on the slow growth rate, fiscal deficits and the current account.

India’s economy is one that appears to be on the brink of a major recession. Their central bank has made bad choices over the last number of years. This has lead to a low growth within the country and a high inflation rate. They changed their political leadership to someone who was more open to change and reform, but this has not come about. India reformed its tax system, which they believed would be the key to success in the country. This in fact caused the opposite. The economy slowed down sharply. They banned the sale of cows in India due to religions reason and this stopped the growth of agriculture as this was a huge export for the country. India has about 12 million new young people enter its job market each year and finding jobs for this vast quality of people is a hinderance for the country and yet another driving factor for lower growth. India expects the initial impact of their tax reform to be over and now they will see a stabilization of their economy. It is believed their economy will now grow in small increments due to this stabilization.

As the British took control of India, it found ways to make India better and with its help, soon enough, India was placed as the second best economy under the British economy (British 12). India’s economy and trade had improved tremendously after the British took over because there was more money coming into India to cause such a rise in its economy. The British also built railroads which created more ease when transporting goods and trading throughout India. The railroads allowed supplies and goods to be exported quickly, bringing it to the ports. Goods that would usually take months to be traded with others now only took a few days with the installment of railroads (Fisher 348). The railroads in India impacted everyone not just the merchants and businessmen in India. But, it was especially beneficial for them because now they could make deals and have goods be transported to them without a long wait. Nevertheless it seem to be that with these new installments India could run smoothly but eventually a problem came along the way. The British did not allow Indians to make their own goods, they banned homemade crafts and since most of India was out of work, the Indians turned to the fields. Work was hard and there were certain goods they needed like clothes so they had to buy it from the British since they could no longer make it themselves from the cotton they collected. Craftsmen became farmers to pay for goods and live a stable life (Bose 53). The British had wanted to get rid of the competition for goods so they decided they want to prevent the Indians from making their own goods. That way if the Indians needed something they can only get it from the British (Bose 53). This led to economic downfall for the Indians because while they were not doing great before the British came, their economy was pretty

The United States has for over two centuries been involved in the growing world economy. While the U.S. post revolutionary war sought to protect itself from outside influences has since the great depression and world war two looked to break trade restrictions. The United States role in the global economy has grown throughout the 20th century and as a result of several historical events has adopted positions of both benefactor and dependent. The United States trade policy has over time shifted from isolationist protectionism to a commitment to establishing world-wide free trade. Free trade enterprise has developed and grown through organizations such as the WTO and NAFTA. The U.S. in order to obtain its free trade desires has implemented a

From 2003-2004 to 2006-2007, annual Real Growth Rate increases from 8.4% to 9.7%. Because of the summer’s credit-market crisis, the Indian GDP Growth decrease to 9.0% from 2007 to 2008 and Indian government estimates GDP Growth for 2008-2009 is 7.1%. The decrease of GDP ascribes the global financial crisis which affects India primarily through trade and capital outflows (The World Bank, 2008:16). On trade, exports are possible to weaken and make its contribution to GDP growth may be drop sharply. However, during

Throughout history, the United States’ trading policies have shifted from early protectionism intended to generate revenue and support domestic industry growth to a high degree of free trade within the international trade market (Carbaugh, 2015). In between, policy changes designed to increase and decrease tariffs were enacted due to pressure from politicians, economists, industries, citizens and other countries. Yet, emphasized in the ensuing paragraphs, America’s continuous efforts to maintain a sufficient amount of trade tariffs has continuously led to fluctuations in the domestic economy. Along with the country’s practice of protectionism, the policies that influenced the major changes in tariff rates include the

Major rise in tariffs have caused a major outrage between the South and the West. Before the tariff rise in 1716 there was no tariff rise because Congress had claimed it to be unconstitutional. Southern citizens had to purchase most of their goods from the North, but mostly from Europe. Many of the citizens of the South had claimed and understood that Congress had claimed tariffs to be unconstitutional, and were shocked to see the rise in tariffs. Many of the items in the South grew tremendously in price, which caused outrage to many citizens in the South, they. The West also saw that since the government had been receiving tariffs, they

The late 1980s and early 1990s marked an age of reform and liberalization in Mexico. After a long period of economic turmoil and isolation behind its borders, Mexico began to allow foreign capital and foreign direct investment (FDI) to flow into its economy, and the external debt that had been hanging over Mexico’s head since the 1982 balance of payments (BOP) crisis was finally restructured. With the signing of the North Atlantic Free Trade Agreement (NAFTA) on January 1, 1994, a trilateral trade bloc was created in North America between Mexico, the United States, and Canada. Foreign trade restrictions were eliminated and commercial agreements with other countries were negotiated, consolidating Mexico’s integration into international

A decline in value of Euro followed by the crisis in Euro Zone is likely to have a negative effect on India’s export to European region, which accounts for around 18% - 19% of India’s total leather exports. The exports from key areas like Leather and Gems & Jewellery, which holds a major contribution in India’s total exports to the region were said to have witnessed a negative effect in the initial months of the current fiscal due to the Euro Zone crisis.

In the recent years, business become more larger due to the advancement of technology, a renewed enthusiasm for entrepreneurship and a global sentiment that favors international trade to connect people, business and market. The economist emphasize about the international trade can increase the production of goods and service, increase the demand from the consumer in local or international, the diversification of goods and services and the stability in the supply and prices of goods and services. As a result, it becomes the main part of the international business and motivated countries to trade with borders. The United States implied the government intervention since the great depression through the financial sector rescue

To comprehend the potential and actual effects of governmental intervention on the free flow of trade

One study by Sharma(2003) examine the relationship between export and economic growth in India by using the time series data from 1971 to 2001. This study test the export led hypothesis for India

The international trade of goods across the world accounts for approximately 60% of the world Gross Domestic Product (The World Bank, 2014). A great proportion of goods transactions occur every second. The primary question is whether international trade benefits a country as an entirety, and, if so, why would a country implement protective trade policies to restrict particular exports? To address this question, this essay aims to explore the impact of trade on various economic stakeholders, including consumers, producers, labour and government and, furthermore, will compare models and theories with reality to ascertain the true winner/ loser in the international trade market.

In April -February 2013/14 FY. , India’s trade with foreign countries has increased in comparison with the same period in 2011/12 FY. by 1.9 % and amounted to 714.1 billion U.S. dollars, while exports declined by 4.0 % (to 266.0 billion U.S. dollars), in the same time imports increased by 0.3 % ( up to 448 , U.S. $ 1 billion ). In general, over the last five years of India's foreign trade has increased almost twice. Reduce of exports of the country to the 2012/13 FY. was associated with the second wave of the financial crisis in the Eurozone and the unfavourable world market conditions on its core products .

RE: Engaging in trilateral cooperation: Mitigating the Chinese threat to U.S. hegemony in Latin America