Importance Of International Trade

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Introduction International trade affects the economic interests of certain groups and countries, the interests of which are intertwined in a complex manner and thus come into conflict with each other. That necessitates a focused state influence on trade relations with other countries through tariffs and non-tariff regulation. The state aims to create the most favorable conditions for the development of the national economy. Free international trade is a source of growth of the nation's welfare. At the same time it is one of the most disputed areas of the economy. Despite the benefits of international trade, all states regulate it differently. One of the forms of regulation is protectionism - the policy of creating favorable conditions for…show more content…
The second chapter is devoted to analysis of foreign trade policies of developed countries on the example of the European Union (EU). 1. Essence and purposes of regulation of international trade 1.1 Concept and types of foreign trade policy of the state Foreign trade policy of the state is the activities of public authorities to establish the optimal ratio of exports and imports of the country, ensuring the sustainable economic development of the national economy and implementation of the maximum benefit for the country. In the field of foreign trade, the state represented by its executive and legislative authorities is intended to: to protect national interests and to turn external trade into a factor of economic development and growth; to improve the position of the country in the international division of labor; to protect the interests of domestic producers and consumers; to improve the export structure; to monitor the favorable ratio of exports and imports, production and maintenance of essential goods, services,…show more content…
However, this does not mean that the state is generally eliminated from the effect on this line of business. It concludes treaties or agreements with other countries in order to provide maximum freedom of its business entities. Free trade leads to positive political implications, because in this case states become increasingly interdependent, and thus reduces the risk of hostile action with respect to each other. Implementation of the free trade policy allows to get the greatest benefit from the international economic exchange mainly for economically developed countries, but in its pure form, it is never ever used. Protectionism is a policy with a purpose to protect the domestic economy from foreign competition. In contrast to the free-trade policy, protectionism eliminatew free market forces, since it is assumed that the economic potential and international competitiveness of individual countries are different and therefore the free market forces can be disadvantageous to the less developed countries. Unlimited competition from stronger foreign states may result to economic stagnation and the formation of inefficient economic structure in less developed

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