Trends in International Trade

Business studies study module
  1. Liberalization that has led to removal of many trade restriction among the countries, increasing the levels of trade
  2. Development of E-Banking which has enable the international trader to get access to their bank accounts from wherever they are in
  3. Development of export processing zones (EPZ) the government to allows the industries involved just concentrate in the exported goods only. It enable the country enjoy the following benefits (advantages of EPZ)
  • It creates job opportunities to the citizens
  • It creates market for locally produced raw materials that they use in their production
  • It encourage the foreign investors to invest in the countries, i.e. in the processing zones, increasing the level of investment in the country
  • Encourages export in the country as the incentives given to them the government makes them to produce more and more for export
  • It stimulates industrialization in the country in all sector including the ones producing for local consumptions

However EPZ’s have the following problems/disadvantages

  • Most of them employs foreigners in their management team, denying the locals a chance to get employed
  • They do not generate revenue to the government, especially during tax free periods
  • They are concentrated in few towns, bringing about imbalance regional development
  • Some of them encourages social evils such as prostitution in areas where they are developed

Development of e-commerce/website trading which has promoted the selling and buying of items through the internet, with payments made online.

E-commerce has the following benefits/advantages:

  • One is able to access the market worldwide, as the countries are connected to the internet
  • There is no discrimination, as both the small and large industries are able to transact through the internet
  • It is fast to transact the business through internet, as it saves on travelling time and therefore suitable for urgent transaction
  • It is cheap especially on the cost of sending, receiving and storing information
  • It is easy for firms to share valuable information about production

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