Showing posts with the label global trade

Improving Economic Activity Through Tariff Reductions

Trade is at the root of economic development. The easy movement of products and services across borders helps create an interconnected world where opportunities for international goods and companies abound. A paper by Dzerniek-Hanouze & Doherty (2013) discussed the significant advantages that can be found by opening trade routes at a national and regional level to ensure that products and services move smoothly to their destinations.  All trade is based on selling products from one entity to the next. According to Black’s Law Dictionary Trade is ,” The act or business of exchanging commodities by barter; or the business of buying and selling for money; traffic; barter.” A value laden product must transfer hands from one person to the next while a reciprocal value laden item (i.e. money) is exchanged in return.  Before revenue can be earned through the selling of products these products must be available and present for purchase. This means that the product is avail

International Sales as Factors of Distance and Knowledge

Organizations that work together naturally share information to maintain their business operations. Keller and Yeaple (2013) discuss the transactional costs associated with embodied (traded intermediates) and disembodied information (direct communication). Their research has implications for multinational firms that require efficient use of information and product transferrence to compete on the global market. Their model provides two ways of analyzing how increased distance reduces sales and why changing technology may influence the dynamics of trade.  Modern advances in telecommunications have positively affected the ability to maintain homeostasis with market trends. Those organizations that engage in research-intensive products rely on   information transference to develop quality products that are well received in the market. The ease of information transference in either embodied or disembodied form impact the strength of operations of multinational firms. For exampl