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Trading & Logistics

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Trading & Logistics Overview

In these 20 years, international trade has become a major economic activity. Therefore, the market contains greater competition. More competitive prices, which brings a cheaper product home to the consumer. International trade not only results in increased efficiency but also allows countries to participate in a global economy, encouraging the opportunity of foreign direct investment (FDI), which is the amount of money that individuals invest into foreign companies and other assets.

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Current concerns about the trading system focus both on areas where multilateral trade rules exist but where fair international competition is hindered by continuing high barriers and state support, and areas where trade rule-making has not kept pace with changes to the global economy. There are also growing concerns about rising government support across a range of industrial sectors, and that current trade rules on industrial subsidies are not able to effectively tackle this support and that new rules are needed to ensure a level playing field. There are two levels of control which are free trade and protectionism. Free trade means that there are no restrictions on trade. The main idea is that supply and demand factors, operating on a global scale, will ensure that production happens efficiently. Therefore, nothing needs to be done to protect or promote trade and growth because market forces will do so automatically. In contrast, protectionism holds that regulation of international trade is important to ensure that markets function properly. It exists in many different forms, but the most common are tariffs, subsidies, and quotas. These strategies attempt to correct any inefficiency in the international market.

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