International Trade Essay Example | Topics and Well Written Essays - 1000 words

International Trade - Essay ExampleCountries pass on therefore get hold of to maximize their output through efficiency and optimum resource allocation. Specialization is an aspect of production whereby a country concentrate in the production of products that it nates produce efficiently using the available resources. Specialization grow a difference in the availability of commodities in different countries and wherefore the need for art. The effect of surplus of a commodity resulting from specialization applies perfectly to Rodamia due to its mode of production. Rodamia is a vast country that specializes in production of agricultural products. Its neighbors Suntize, Uthania, and Alfanzia are to a greater extent or less smaller in size and production capacity. This paper will therefore present a report on the state of Radamias international. The report will be aimed at making recommendations to the countrys electric chair. International shift has advantages as well as limita tions to the concerned countries. In most cases the benefits of international pile overweighs the limitations and hence its continuity. This implies that Rodamia will benefit from the advantages of international handicraft and at the same time suffers from the effects of the trade due to its limitations. Rodamia is a large country with many an(prenominal) resources that include land, labor and capital these resources enable the country to produce goods and services for its growing population. In the process of stomaching, the requirements of its people the country experience some aspects of overrun resulting from specialization and availability of resources. International trade will therefore create a market for excess produce of the country. The countrys economy depends mainly on agriculture and therefore the sector is of great interest to the country. Through international trade, the country will be able to realize specialization. International trade will enable the country t o concentrate in the production of agricultural products. This will enable the country to realize the benefits of specialization, large-scale production, and economies of scale. Large-scale production to meet the domestic and international market demand will increase the countrys per capita income resulting into improved standards of living (Tucker 78). The country has a chance to realize more benefits once fully engaged in the trade and I therefore recommend international trade to the country. The availability of benefits or advantages from international trade implies that the trade has some limitations. Limitations of international trade are difficulties or barriers that prevent free trade. Most countries have tried as much as possible to create free international trade. However, it is impossible to eliminate the difficulties. This implies that Rodamia should be prepared with appropriate strategies to tackle these limitations. To devise effective strategies required to tackle the limitation Rodamias president needs to be aware of some of the difficulties that his country superpower face from foreign trade. International trade is a long-distance form of trade and hence it is difficult to establish and maintain a close relationship between traders and their customers. This issue will create a difficult environment for international trade through the extra cost required to maintain the long distance relationship. Secondly, cultural differences between the countries involved in international trade will precede to the difficulties experienced in the trade. Cultural differences will make people of a certain country to be selective in terms of their consumption and this might interfere with free trade. The country also needs to be aware of restriction imposed by different countries to control their imports. Knowledge of these limitations