foreign trade

Examples of foreign trade in the following topics:

• Dependency Theories

  • Countries have developed at an uneven rate because wealthy countries have exploited poor countries in the past and continue to do so today through foreign debt and foreign trade.
  • In addition, foreign trade and business often mitigate local governments' ability to improve the living conditions of their people.
  • This trade often comes in the form of transnational corporations (TNCs).
  • Widespread malnutrition is one of the effects of this foreign dependency.
  • Through unequal economic relations with wealthy countries in the form of continued debts and foreign trade, poor countries continue to be dependent and unable to tap into their full potential for development.

• Colonialism and Neocolonialism

  • India is an example of a British colony that did not achieve independence until the mid-20th century, remaining mired by foreign debts and lack of capital for decades after.
  • Modern colonialism started with the Age of Discovery, during which Portugal and Spain discovered new lands across the oceans (including the Americas and Atlantic/South Pacific islands) and built trading posts.
  • Specifically, neocolonialism refers to the theory that former or existing economic relationships—the General Agreement on Tariffs and Trade (GATT) and the Central American Free Trade Agreement—are used to maintain control of former colonies after formal independence was achieved.
  • This theory argues that countries have developed at an uneven rate because wealthy countries have exploited poor countries in the past and today through foreign debt and foreign trade.
  • At present, much of South and Central America is still economically dependent on foreign nations for capital and export markets.

• Mexico's Economy

  • If substantiated, this would be evidence that international trade has not improved the standard of living for all Mexicans..
  • Trade liberalization continued after that, with several free trade agreements with Latin American and European countries, Japan, and Israel signed during former President Vincente Fox's leadership (2000-2006).
  • For example, Mexico's heavy dependency on foreign influences, particularly the United States, has led it to adopt policies that do not favor its own citizens.
  • Similarly, many critics claim that while the NAFTA agreement proved effective in increasing Mexico's economic performance, foreign trade policies have not done enough to promote social advancement and reduce poverty.
  • Since liberalizing its trade policies beginning in the 1980s, Mexico has entered into Free Trade Agreements with many countries.

• Global Inequality

  • Countries have developed at an uneven rate because wealthy countries have exploited poor countries in the past and today through foreign debt and transnational corporations (TNCs).
  • Some of the land in Cape Verde for example, could be planted and harvested to feed people but is planted instead with cash crops for foreign exchange.
  • Widespread malnutrition is one of the effects of this foreign dependency.
  • Foreign trade and business get in the way of the freedom of local governments.
  • Core countries own most of the world's capital and technology and have great control over world trade and economic agreements.

• The Status of Women in Mexico

  • Some social scientists have found that poorly-compensated Mexican farm laborers are made to work under potentially unsafe conditions to meet the demand for produce in wealthier trading nations, such as the United States.
  • If substantiated, this would be evidence that international trade has not improved the standard of living for all Mexicans.
  • If substantiated, this would be evidence that international trade has not improved the standard of living for all Mexicans.
  • For example, Mexico's heavy dependency on foreign influences, particularly the United States, has led it to adopt policies that do not favor its own citizens.
  • Similarly, many critics claim that while the NAFTA agreement proved effective in increasing Mexico's economic performance, foreign trade policies have not done enough to promote social advancement and reduce poverty.

• Colonialism, Decolonization, and Neo-Colonialism

  • Many accuse the World Trade Organization and the International Monetary Fund of being agents of neocolonialism.
  • Easier access to foreign lands encouraged European nobles and merchants to seek out new territories in an effort to acquire raw materials and develop new markets.
  • Colonized territories were forced to depend on colonizers for trade.
  • In this way, foreign companies exert significant influence over post-colonial states.
  • Second, foreign countries can exert influence over post-colonial states by only offering loans under certain conditions.

• World-Systems Theory

  • India is an example of a semi-peripheral country -- it is largely dependent on foreign investors for capital, but has a growing technology industry and emerging middle class consumer market.
  • Cape Verde is a peripheral country -- foreign investors allow for the extraction of raw materials and the production of cash crops, but all are for export to wealthier consumer markets.
  • Core countries own most of the world's capital and technology and have great control over world trade and economic agreements.
  • In the 11th century, international production and trade was dominated by the exchange of silk, and thus countries along the silk route were the dominant participants in the "world-system. " Today, with vast communications and transportation technology, virtually every society participates in the world-system as either a source of raw materials, production, or consumption.

• Global Stratification and Inequality

  • A significant percentage of Indian jobs, however, are tied to American and Japanese technology firms, indicating that India's economy suffers from being dependent on foreign, dominant nations.
  • A significant percentage of Indian jobs, however, are tied to American and Japanese technology firms, indicating that India's economy suffers from being dependent on foreign, dominant nations.
  • For example, the small African nation of Cape Verde is significantly indebted to European nations and the U.S., and the majority of its industry is controlled by foreign investors.
  • Countries have developed at an uneven rate because wealthy countries have exploited poor countries in the past and today through foreign debt and transnational corporations (TNCs).
  • These core countries own most of the world's capital and technology, and have great control over world trade and economic agreements.

• Disinvestment and Deindustrialization

  • Third, deindustrialization can be marked by a balance of trade deficit, or a situation in which a country imports more manufactured products than it exports.
  • Finally, deindustrialization can be observed when a nation's balance of trade deficit is so sustained that the country is unable to pay for the necessary imports of materials needed to further produce goods, initiating a downward spiral of economic decline.
  • American companies are still involved in the financial aspects of the company; the company remains an American property or American financiers invest through foreign direct investment in companies based abroad.
  • In this model, daily operation occurs overseas, including the hiring of foreign workers in the country where the manufacturing operations are now based.
  • After free-trade agreements were instituted with less-developed nations in the 1980s and 1990s, Detroit-based auto manufacturers relocated their production facilities to other countries with lower wages and work standards.

• Trade Blocs and Common Markets

  • A trade bloc is an agreement where regional barriers to trade are reduced or eliminated among the participating states.
  • The North American Free Trade Agreement (NAFTA) is an example of a formal trade bloc.
  • Trade blocs can be stand-alone agreements between several states, such as the North American Free Trade Agreement (NAFTA) or part of a regional organization, such as the European Union.
  • However, entering a trade bloc also strengthens ties between member parties.
  • For better or for worse, trade blocs are prevalent.