International Business continutes to increase inexorably and the World Essay

International Business continutes to increase inexorably and the World Trade Organisation supports this by encouraging countries - Essay Example Additionally, the WTO has sought to realize objectives such as global economic integration and increase in global incomes. However, the WTO quest to promote free trade has encountered various challenges. These challenges include countries that trade under protectionist policies other countries have refused to open their economies totally. Despite the handicaps, WTO has accomplished some of its objectives. This is because there has been a gradual rise in the global trade (Bradford 2003, p. 30). WTO has sought to enhance free trade by campaigning that nations trade freely. However, it has not accomplished the above objective. This is because numerous nations have adopted various protectionist policies that have prevented free and fair trade. Additionally, bodies such as European Union have sought to protect their constituent nations by barring entry of certain comedies to this region. However, the political and trading block has also increased trade among its nations. Protectionism is the key hindrance to free trade in the world. UK has adopted various policies that prevent free trade. Some of the policies entail massive taxation, quotas and total ban. The adoption of such policies by nations has resulted from various reasons. Such reason primarily relates the saturation of the economy with cheap products that have pricing advantages. Despite the phenomenal trade increases that would occur on the elimination of protectionism, there would be negative economic implications. Countries would lose some of their sectors owing to importation of certain products into their economy (Bradford & Lawrence 2004). There are countries such as China, India and Brazil that produces certain products at lower cost owing to low expenditure of labour and other inputs. Exporters from such countries would have a competitive edge over most producers globally. Therefore, nations that experience higher cost in the production of similar goods would encounter reduced clientele. The cheap pr oducts would floods markets globally. As such, manufacturer in countries such as UK may suffer owing to flooding of the economy with such goods. The local industry in these nations would suffer greatly owing to free trade. Conversely, nations producing items at low cost would have a massive competitive advantage over their rivals. This would result in economic prosperity of such nations. Protectionist policies enacted by the UK government seek to protect its producers who are vulnerable to products subsidized by global powerhouses. This has been the key justification for the protectionist policies. Despite the justification by leading nations for enacting such policies, it is evident that they have been the key hindrance to free and fair trade. Leading nations incur higher cost since they pay higher remuneration. As such, their firms incur higher costs. This translates to higher prices. Irrespective of the quality of such product, they can compete with other gods owing to pricing. T he above reason is solid for enacting protectionist policies (Chorev 2007, p.45). Free trade would increase entry of goods in all nations. As such, some of the industry would close down as detailed above since they cannot survive competition on the global front. The closure of these industries would culminate in job losses. One the key concerns of government is unemployment. If the government allows free trade, then there will be substantial job losses. Any government that would

Homework 2 Essay Example | Topics and Well Written Essays - 250 words

Homework 2 - Essay Example It can as well be noticed in the records that Saudi Arabia had the highest percentage of contribution while Comoros had the lowest percentage of contribution to the sum total of the Gross Domestic Product of the 22 Arab League members (Vijay 2012). The GDP was as well compared with that of the various countries. The first country that was compared with that of the 22 Arab League members was United Kingdom. From the records, it was clearly seen that in the year 2012, the GDP of the country was 2440 billion US dollars. This was slightly higher than that of the 22 countries in question. It was later followed by Germany that had a GDP of 3600.8 billion US dollars in the same financial year, 2012 (Vijay 2012). The GDP of France and U.S were the highest compared to all the computed GDP of the other countries. In the year 2012, the GDP of France was found to be 2.613 trillion US dollars. This was many times the GDP of the 22 Arab countries in hand. The leading country in terms of the GDP was US that had a GDP amounting to 15.68 trillion US dollars (Vijay