Case Study
Introduction
Economic globalization is a tendency that is directed towards the global goods integration, labor, and capital as well technology. Trade regulations are mainly designed so that they can prevent the occurrence of irregularities such as tax avoidance which ends up making the international trade as a complex process (Ayub, 2017). The international trade is normally associated with stiff competition and increased consumer base as well as a wider market. With the implementation of taxes regulation lowers the ability of international business to grow. In that the expansion of corporations is hindered since foreign corporations are becoming important in the economic and industrial life (Ayub, 2017). This result in the lowering of the profit margins based on the grounded trade barriers which results into higher products prices. Flexible regulations are essential in economic development as they do not interfere with the drivers of the economy.
Relationship with Textbook Material: Chapter One and Two
International business or globalization can be described as an expanding trade that collectively reduces trading barriers which is the most authoritative tool that nations that work together can utilize in reduction of the rate of poverty and raising the standards. According to the first chapter of the book free trade can be described as the best approach in advancing the economic world’s development (Ball, 2013). The practice is not beneficial because of its theoretical compel but base on its ability that has been demonstrated on practice. Free trade is essential in the promotion of better and additional jobs. Expanded trade results in the creation of more revenues through more job performance and creation of jobs which is significant in raising the standard of living. The importance of creating free trade is to ensure that changes are not blocked rather in management of costs of adjustment of trade and offers supports to the employee towards employment (Ball, 2013). Globalization is more efficient with flexible regulations that do not hinder the ability of companies to get into different nations. Economic equality can best be gained through encouraging free trade that promotes increase of revenue margins.
Investment and trade impacts social and economic development significantly. Economic development cannot be achieved without high trade and investment operations which are significant in generation of high revenues (Ball, 2013). In the world today economies states are highly open to globalization. Trade normally plays a vital function in shaping social and economic performance and countries prospects globally. There is no state that has attained development has not done it without trade and investment. However, the benefit of investment and trade which mainly depends on the setting, aims and context in which it is operated (Ball, 2013).
Personal Opinion
In my opinion, free trade is essential in increasing economic development. Economic development requires many efforts in terms of resources and investment. Trade and investment liberty is required in conducting fair investment activities (Ayub, 2017). Trade liberty is essential in the creation of entering fresh markets and the increase of products sales. Free trade helps in developing communications in which investment highly depends on it. In increasing the rate of revenue free trade helps in creating fresh market entries. Liberty in trading and international investment is the main determinant of economic growth in every state. Liberty results in the creation of more and well established jobs those results in the rise of the living standards. Economic development requires international businesses sources which helps in establishing the social and economic sector (Ayub, 2017).
References
Ayub, C. (2017). Brazilian trade regulations ‘too complex’. Retrieved from http://www.worldfinance.com/strategy/legal-management/brazilian-trade-regulations-too-complex
Ball, D. A. (2013). International business: The challenge of global competition. New York: McGraw-Hill/Irwin.
