International Economics 13th Edition by Robert Carbaugh

Question

International Economics 13th Edition by Robert Carbaugh

النسخة 13الرقم المعياري الدولي: 978-1439038949

International Economics 13th Edition by Robert Carbaugh

النسخة 13الرقم المعياري الدولي: 978-1439038949

تمرين 2

What factors influence the rate of growth in the volume of world trade?

التوضيح

موثّق

Factors that influence the rate of growth in the volume of world trade include the existence of the foreign exchange market and the imposition of trade barriers such as tariffs and quotas. The international money market helps people from different nations obtain the currency they need to purchase foreign goods and services. Without it, it would be extremely difficult to find mediums of exchange used in the international product market since suppliers want to be paid with their national currency.
Suppose nations imposed tariffs (taxes) and quotas (numerical limits) on imported goods. This would decrease the volume of world trade because it would decrease the demand for imports by all of these countries. A country can only export its goods through the international product market if another country is willing to purchase (import) those goods. The existence of tariffs discourages countries from importing goods because it proves to be more costly. Quotas also reduce the volume of global trade by imposing numerical limits on the number of imports a country can purchase.