Impact of Covid-19 on International Trade

Trade and multinational
enterprise

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
LITERATURE REVIEW................................................................................................................3
ANALYSIS AND DISSCUSION...................................................................................................6
Impact of Covid-19 on international trade...................................................................................6
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9
Books and Journals......................................................................................................................9
Online........................................................................................................................................10

INTRODUCTION
Free trade is when there is total absence of government related policies which restricts
import and export of the goods and services between countries. Economists believe that trade
among nation is the foundation of building healthy global economy among different countries.
Implementing free trade policies has been a success (Panagariya, 2019). Free trade argument is a
treaty between two or more nations agreeing to reduce any obstruction to imports and exports of
goods and services among them. Free trade arguments are made to encourage local organisations
to be more competitive and become less dependent on government subsidies. This helps in
growth in the country’s economy while less government expenses. International economics
enclose various types of important sub areas which are put out of place from one another (Irwin,
2020). There are many international trade approaches for a multinational company which is
explained in detailed.
LITERATURE REVIEW
Free trade is a theoretical policy beneath which government has no tariffs, taxes and
duties on the import and exports. Free trade can be considered as opposite to what protectionism
holds which is a form of defensive trade policy to avoid the chances of having foreign
competition. Free trade facilitates lower prices for the customers and increased exports (Ehrlich,
2018). IT allows the countries to have access to large area of markets all around the world. It is a
process which can lead to opportunities of entering into new markets and improving the
economy charts of many countries. There are several benefits from the economies and variety of
choice of goods. These are:
Creates economic growth opportunities: Free trade has helps many countries to increase
their economic percentage per year which would not be possible to do otherwise. Each nation
gets a profit of manufacturing, commercial, and building industrial strength in their economy
when the countries are allowed to move products and services freely across the borders as by the
agreement (Doan, and Xing, 2018). There is more stress on lower costs happening with each
transaction. The prices are lower for these products and helps in maintain healthy competition
within the market. Specialising in goods at the locations where the opportunity cost is low leads
to increase in economic welfare for many countries. Therefore, even with limited set of rules and