World Politics Trend and Transformation

Question: Discuss about the World Politics for Trend and Transformation. Answer: Introduction In contemporary times, marketers emphasise more on globalization of the company and their products. However, it is evident that not all resources are equally distributed all over the world; and businesspeople hence values international trade of these resources for manufacturing the end- products for customers. Kegley and Blanton (2015) in this context depicts that goods cannot be created with existing technology without world trade. Du and Paltsev (2014) on the other hand affirms that international trade allows establishment of international communication and sharing of knowledge. Thus, international trade has to be managed properly otherwise, the business has to be suffered due to poorly managed international trade. The major purpose of this report is to identify the underlying reason for the politically contentious nature of international trade in 2017. There are some issues that are present in international trade is global financial crisis, nations poverty, monetary fluctuations, difficulty in transportation and communication, lack of information about foreign businessmen, documentation, intense competition, import and export restrictions and investment for longer period (Chaudoin et al., 2016). These barriers results in political distance and controversial aspects that business people have to overcome. The Forbes magazine also reveals that free trade can increase inequality among nations that also results in political controversy. However, different leaders from different nations possess different perspectives. This is the major reason that results in adverse controversies among nations. Moreover, Bernard et al. (2012) highlight that free international trade undermines cultural diversity and causes excess dislocation and pain. According to experts, due to financial bubble for economic boom, some of the worlds largest financial institutions can collapse. Viner (2016) moreover portrays that due to recession, these nations then have resorted to rescue packages and extensive bail-out for financial institutions. These aspects results in imposing harsh austerity measures on their organization. These bail outs are often criticized as privatizing of the profits. The amount of the bailout is so high that smaller businesses person and poorer people rarely avail these bailouts as depicted by (Becker et al. 2013). All these factors leads to global crisis and the international trade may impact lot. However, in 2017, Trumps trade policies are worrying economists. All the information are collected from newspaper articles and business journals so that accurate and updated facts on international trade issues can be evaluated. Purpose of the assignment Trumps desire to make America as a superior country and he demanded to impose a 35 percent tariff on the NAFTA (North American Free Trade Agreement) (Lexology, 2017). US, Mexico and Canada are the three countries under NAFTA and following the Trumps demand results in higher cost of same products in other laces compared to US (Lexology, 2017). It is also highlighted in this article that president cant levy or amend tariffswithout congressional approval. However other partys leaders are proponent of free trading tariffs. This leads to a situation of conflict among the political leaders that influences the international trade and business of a nation. Moreover, Impullitti and Licandro (2017) portrays that distance between different countries resembles difficulty in establishment of quick and close trade contacts that results in delay in transporting the material from one nation to the other. The president of U.S. has noticed that Washington trade has ignored foreign governments and resu lts in tampering subsidies to promote exports along with the manipulation of the exchange rates. Thus, the president desires for imposing export tariffs on American products as present system put the American producers at a disadvantage that furthermore results in unfavorable trade balance. Another political controversial aspect is the mismatch of the monetary values compared to U.S. Dollars. Caron et al. (2014) describes that politician of one nation might have negative perspective regarding the other nation and this may hamper the export and import between these nations. Taken for instance, U.S. president accused China of keeping its currency artificially low so that they can attain an unfair price advantage. Moreover, the concerned person forces Mexico and Canada to protect American workers and hence re- write the NAFTA. Trumps also demands for 45 per cent tariff on Chinese imports. This lead to a controversial situation where Donald Trump results called China as a currency manipulator as U.S. trade deficit with China is disproportionately large. Another aspect due to which international trade provokes controversy in recent times is environmental factors. Disdier et al. (2015) highlighted that international trade in goods and servicesresults in health burden of air pollution. Du and Paltsev (2014) furthermore portrays that many people died from the pollution and danger raised by international trading system. It has been noted that atmosphericemissionshas been increased in recent times and especially in energy sector the death due to this emission is the highest. Krishna and Senses (2014) portrays that the poisonous particles during the trading of these materials results in 90% of the premature deaths. In the year 2016, particulate matter emitted in China leads to more than 3100premature deaths in Western Europe and the United States. Moreover, World Trade Organization (WTO)have also taken initiatives for inaugurating committee to regulate international trade practices so that challenges raised by stakeholders in trading can b e checked (Impullitti Licandro, 2017). All the nations have to follows the guidelines set by this committee. Becker et al. (2013) moreover predicted that this might results in conflict among the business traders as different business trade have different requirements and fulfilling similar legislation for all business products may not offer the desired result. Recommendations One of the ways to improve the international trade is to do business with Least Developed Countries(LDCs) in order to get cheaper cross-border trade. Cutting red tape in this aspect is also beneficial to untapped the potential of regional integration. In this way, political leaders of the developing countries will refer the imported countries and there is a probability for effective association in future for business. In addition to that, formulating a regulatory and legal regime for the promotion of the foreign investmentalong with the incentive plans for the small and medium-sized enterprises also ensures effective international trading among nations. Furthermore, adopting the features of e-commerce and online services allows a businessperson to handle the trading procedures without any political conflicts. Conclusions International trading allows establishment of international communication and sharing of knowledge among the nations which are liable for trading their products with each other. Thus, it can be concluded that the major reason for the controversies in international trade are global financial crisis, monetary fluctuations, nations poverty, lack of information and difficulty in transportation and communication along with the import and export restrictions on business. It is also concluded from the discussion that free trade can increase inequality among nations and as a result, they have resorted to extensive bail-out for financial institutions, which is rarely available for smaller businesses person. In this discussion, it is also highlighted that Trumps desires to make America as a superior country and as a result he want an imposture of 35 percent tariff on the NAFTA along with 45 per cent tariff on Chinese imports for America. This results in conflicts with republic party leaders. A ll the factors that is identified in this assessment highlight the reason for which international traded has become difficult for business people. Reference List Becker, B., Chen, J., Greenberg, D. (2013). Financial development, fixed costs, and international trade.Review of corporate finance studies,2(1), 1-28. Bernard, A. B., Jensen, J. B., Redding, S. J., Schott, P. K. (2012). The empirics of firm heterogeneity and international trade.Annu. Rev. Econ.,4(1), 283-313. Caron, J., Fally, T., Markusen, J. R. (2014). International trade puzzles: a solution linking production and preferences.The Quarterly Journal of Economics,129(3), 1501-1552. Chaudoin, S., Kucik, J., Pelc, K. (2016). Do WTO Disputes Actually Increase Trade?.International Studies Quarterly,60(2), 294-306. Disdier, A. C., Fontagn, L., Cadot, O. (2015). North-South standards harmonization and international trade.The World Bank Economic Review,29(2), 327-352. Du, Y., Paltsev, S. (2014).International Trade in Natural Gas: Golden Age of LNG?. MIT Joint Program on the Science and Policy of Global Change. Impullitti, G., Licandro, O. (2017). Trade, firm selection, and innovation: the competition channel.The Economic Journal. Kegley, C. W., Blanton, S. L. (2015).World Politics: Trend and Transformation, 2016-2017. Nelson Education. Krishna, P., Senses, M. Z. (2014). International trade and labour income risk in the us.The Review of Economic Studies,81(1), 186-218. 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