International trade Economics
Importance of International trade Economics
International trade economics is that branch of economics which use microeconomics tools to understand the international economy it uses both demand- supply analysis, to analyze the international markets. It studies the market structure and feature of monopolistic, oligopolistic, monopoly and perfectly competitive market to compare the markets around the world. The importance of international trade is that it is the study of the impact of international trade on trade policies of the government and the economic conditions of the country. The impact of international trade can be noticed on the amount of export in the world economics which is almost got doubled in the last decade.
The international trade gives rise to export and import all around the world, to safe the internal economy a country the government impose import tariff on imports. Import tariff form a large part on the revenue collected by the government through taxes and tariffs, imposing tariff is not a new thing countries even in the old time used to impose heavy import duty to protect its internal sellers. For example US in current period impose a 2.5 percent import tariff on the automobiles imported. There is different rate of tariff for different types of goods, thus international trade through tariffs open a source for government to increase its revenue. The importance of international trade economics can be realized by the fact that the term liberalization is related to international trade which means lowering the tariff rate to increase the flow of export and import between countries.
Why is it difficult to solve international trade economics problems?
The problem faced by the students while dealing with the international trade economics problems is to mix the trade economics with the international economics. International trade economics is the economics which is related to the open economies, which are ready to get in an import and export business with the other countries. International studies the gain from entering into the trade or by restricting the trade, international does not mean the free flow of trade it is about the limited control trade which can be beneficial for the both exporting and importing countries.
Another topic which is problematic for the students is to decide the rate of tariff which can be optimal, which means it does not control the trade nor it let the import to hurt the economy of the country that mean that the tariff should be such that it reduce the Dead Weight Loss in the economy should be minimal. There are different methods to calculate the level of tariff in a country and each method can give different idea about the tariff. The tariff should not affect the objectives of the international trade like increasing return trade, growth and income distribution.
Few important tips to solve problems of international economics
The tips to solve the problem of international trade is to learn about the importance of international trade in current economic situations and what are the features of international trade such as-
- Increasing return and trade,
- International factor movements,
- Growth and trade,
- Income distribution and trade,
- Economic integration,
- Multinational enterprises.
Another tip to solve the problem of tariff calculation in international trade is first to sum up all the tariff rates and divide it by the number of import categories, it will give an efficient tariff rate. Another method which is quite popular in calculating international trade weighted tariff rate where there is predetermined weights assigned to different tariff rates, both these methods will help students to calculate the optimal tariff value.
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In the international trade economics tools from both micro economics are used to understand the impact of trade on the world economy, live support help from a person who is an expert in trade economics. The procedure for getting life support help 24x7 is very simple the student's just need to send an email or requirements to us where the trade economics problems will be assigned to solve the assignment. The live support help is an online help service provided to students who can get help from the experts at any point of time, the time is not a constraint.
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