International trade is the exchange of goods, services and capital between countries. This type of trading has existed for centuries, but it is experiencing resurgence due to economic globalization. The international trade theory is the branch of economics that studies models of international trade and standby letter of credit Dubai. Over the past two decades, international trade has greatly increased, especially for developed countries and newly industrialized countries, promoting the growth of the latter.

The least developed countries such as Zimbabwe have not experienced such an increase in cross border trade. The volume of world trade increased fifteen-fold from 1950 to 1960 and has tripled between the fall of Berlin Wall and 2010. Regional agreements are of different types, each reflecting different degrees of economic integration.

Finally, the development of some protected areas may ultimately prove to be profitable for some foreign economies. Although the common agricultural policy hampered U. S. Agricultural imports, it however, increased orders of farm equipment.It’s difficult to conclude the benefits without the establishment of regional economic spaces for growing volumes of global trade.

This classification is the one proposed in 1961 by Bela Balassa in The Theory of Economic Integration. Indicators include exports of goods and services as a percentage of GDP; annual change in global production compared to the annual change in the volume of exports; total volume of imports and exports world and rate of open economies (exports + imports divided by the GDP).

Thus, Mike Moore, former president of the WTO said that regionalism could be used to complement and promote multilateralism, but it should in no way replace it. The other danger is a focus of regional economic groupings on their competitiveness with other major economies. The term economic war or the systematic search for competitiveness are symptoms of a return of mercantilist dogma, what Paul Krugman calls pop theory of global trade.

Growth in one factor can only occur with an increase in production in industries in which this factor is intensively used, this will lead to the release of a fixed factor, which will be available for use with a growing factor in the expanding industry.About 60 % of world GDP is used for services, majority of which are not subject to international trade (education, health care, government, wholesale and retail trade). This so-called non-tradable activities, ie not involved in international trade.

In 1950, Jacob Viner (The Custom Union Issue) attempted to predict the consequences of the establishment of regional economic unions. They claimed a double impact on trade: They are primarily destructive on trade flows, as partners of one economic union tend to reduce their imports from other countries.

This was for instance the case for Britain vis-a-vis the Commonwealth following its entry into the European Union, thus supplanting the imperial preference. More recently, the entry of Eastern Europe countries into the European Union may affect textile imports from Maghreb. They is another creative side flow. They enable collaboration and thus increased specialization of individual member countries increasing global trade. They allow a better understanding and increased knowledge of business partners that brings confidence and ease in trade (for example, it is easier to organize an exchange with the Germans than with the Chinese).

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