International Production and Trade Essay Example | Topics and Well Written Essays - 750 words

International Production and Trade - analyze ExampleThe author in the chapter sought to identify the basic features and issues forming the world(prenominal) production and trade structure. time discussing the changes taking place in the production of goods, the author uses the case of Thomas Friedman to explain the post-world war II changes that have taken place. Technology is arguably one of the most significant steps that man has sight so far. As such, it has revolutionized both the production process and the communication channel. While the internet connects people in a previously un-imaginable way, new products such as cars and clothes go with mass production. another(prenominal) notable change in the production process is the level of fragmentation and specialization taking place. With the increase level of interdependence between different countries and regions around the world, production methods have spread in altogether parts of the globe. Statically, the World Bank de monstrated the kernels of this growth and increase in production through the 2005 worlds gross domestic product, which was approximately $44.3 trillion. Of this, 78% came from the developed countries, while the middle and let loose income, countries contributed only 22 percent. Five years earlier, the level of production was fives lower as it was in 2005. McGrew, an dear observes that there have been changes in the trends of FDIs, which have subsequently contributed to the capital mobility. In this mobility, firms now migrate from the change countries and set up production plants in less developed countries due to labor issues as rise up as environmental issues. International trade, which is trade that takes place between different countries, help in the trade union of countries. Since trade ties countries together, it generates significant political, economic, as well as social interdependence between countries. As such, legion(predicate) states use it as a means of gathering income, opting to regulate it in an effort to safeguard their interests. The international trade structure, by pulling international leaders, IO and the NGO officials, pulls three perspectives of trade at the same time. disrespect their conflicting arguments, these perspectives have contributed to the understanding of the development of trade in the international front. International trade rules came into effect in the sixteenth through the 18th centuries. Tariffs and quotas existed back then, as there was a restriction of importing intermediate goods. This aimed at protecting local industries from unfair competition. One of the international trade policies launched in the eighteenth century advocated for a laissez-faire type of policies. Proposed by Adman Smith and David Ricardo, the liberal trade insurance policy still applies in the case of the Britain markets. These were the developers of the comparative theory, which advocated for opportunity cost of production. Proponents of opportunity cost theory pointed forth that for a country to produce a particular good it had to forego a particular commodity that was rather expensive to produce. As such, introducing trade restrictions was an unjust way of treating other nations. However, the mercantilists challenge the arguments of comparative advantage, til now currently. They argue that states can