International Trade and Enterprise

International trade
and enterprise

INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
QUESTION 1..................................................................................................................................1
Examination of the causes of the British Changing trade patterns with reference to Gravity
Model...........................................................................................................................................1
QUESTION 2..................................................................................................................................3
The way in which Ricardian Model different from the H-O theory in explaining the
international trade patterns among nations..................................................................................3
QUESTION 3..................................................................................................................................4
Discussion of trade need not be the result of comparative advantage but it can be a result of
economies of scale.......................................................................................................................4
QUESTION 4..................................................................................................................................5
Explain the effects of migration of labour between two nations.................................................5
QUESTION 5..................................................................................................................................6
Infant Industry protection is a key solution for the growth of industrialization of developing
countries.......................................................................................................................................6
QUESTION 6..................................................................................................................................7
Anti-globalisation movement goals and was it right or not.........................................................7
CONCLUSION................................................................................................................................8
REFENRECES................................................................................................................................9

INTRODUCTION
International trade could be defined as the exchange if goods, services and capital across
the international market. With the help of it, all the organisations can carry out all the operations
in different nations and generate higher revenues (Baier and Bergstrand, 2019). In different
countries it represents a significant sharing of GDP. There are various types of trades such as
export, import, entrepot etc. It is a type of combination of import and export trade which is called
re-export. It is very beneficial for all the countries that are conducting international trade. These
are increased revenues disposal of surplus goods, better risk management, longer product
lifespan, benefiting from currency exchange etc. Present report is based upon assessment of
various aspects in context of international trade. This assignment covers various topics such as
world trade overview and Gravity model, resources and trade, Heckscher Ohlin Model.
Economies of scale, imperfect competition, international trade, international factor movement’s
etc. are discussed in this report. Apart from this, trade policy in newly industrialized and
Controversies in Trade policy are also covered in this assignment.
MAIN BODY
QUESTION 1
Examination of the causes of the British Changing trade patterns with reference to Gravity
Model
During the 19th Century Britain was performing trade activities with nations from various
places around the world. It includes Asia, Africa, North and Latin America and most of it was
done with European Countries. There are various causes of Britain changing the trade patterns. It
could be understood with the help of Gravity Model. It is model of international trade which is
applied in the international economies. In traditional form it was used for the purpose of
predicting bilateral trade flows which are based upon economic sizes and it is also used to
analyse distance between two of the units. This model described that interrelation among two
different locations could be analysed by the items of the individuals of the places which could be
divided by the square of the distance from one to another. One of the main implications of this
model is that the distance in not the single element or factor which can help to determine the
interaction between two different countries or cities. In 19th Century Britain was importing and
exporting its goods in different location but with the time the trading patterns of it was changes
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because of the distance with various countries. There are various causes of changes in the trading
patterns of Britain. All of them could be understood with the help of following discussion:
 Total government debt of Britain as the percentage of GDP was very high and it was the
main reason for taking less interest in the trade with different countries around the world
and changing patterns of trade.
 There three main ports for slave traders in Britain and these are Bristol, Liverpool and
Glasgow. All these ports were facing issues due to trade with various countries and it was
resulting in decreased economic growth (Bikker, 2017). In order to deal with them,
government of Britain changed the trading patterns of the country. The distance of
various nations with these ports was very high and it was also a reason due to which trade
patterns were changed by Britain.
 In 19th century Britain was performing trade activities with various countries which were
benefiting them but not Britain and in order to ignore the negative impact of it the legal
authorities decided to change the trading patterns so that the issues could be resolved.
 Main cause which resulted in changes in the trading patterns of Britain is the changes in
the global economy like various advanced economies. In UK trader in manufactured
goods was fallen in relation to the trading of financial services. It demonstrated that the
trade of goods is decreasing as compared to the commercial and financial facilities. By
analysing these aspects, the governmental bodies decided to reduce the trade of goods
and increase it for services so that they can improve the economy.
 There are various advanced economies like Britain which experienced the
deindustrialisation with less output generated at national level by the manufacturing
industry and it was the main reason due to which trading patterns were changed (Do,
Levchenko and Raddatz, 2014).
From the above discussion all the main causes of changed trading patterns of Britain could
be determined. The governmental bodies paid attention towards various aspects which
resulted in the changed patterns of trading by the Britain with various countries like Africa,
Latin and North America etc. If the patterns would not have been changed then it would
have affected the growth of the country.
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