Advantages Of Technology In International Trade :: Free Essay Writer

Technology plays a major role in international great deal. Databases, overnight delivery and faxes have opened the world mart to not only largercompanies but small ones too. To add to this globalization, companies and evencompetitors are combining and forming alliances to arc cost and increase theprofit margin. Chrysler, General Motors and hybridisation have formed an alliance inresearch and development to avoid duplication. These alliances are not onlywith domestic companies but they in any case go over national lines. Companies arepushing for integration of the world economy in hope for increased profits andgovernments are beginning to listen.Since 1986 (GATT) General Agreement on Tariffs and Trade have taken theincitive to move towards the easiness of international trade. GATTmembers agreed to reduce tariff and non-tariff trade barriers. From 1986 to thepresent due to GATTs lead legion(predicate) markets have been open to the United Statesincreasing exports and increasing ef ficiency through competition.One of the most aggressive liberalization groups to follow GATTs leadis APEC (Asian Pacific economical Community). APEC consist of 18 countries thataccount for 1/2 of the worlds output. The three largest economies Japan, Chinaand the United States are members. APEC leaders are committed to achieving freeand open trade for the region by 2010. APEC is moving towards this goal throughmany means including accelerating initial Japanese tariff cuts by 50%. Chinawill also cut a number of tariffs by 30%. Indonesia and other APEC members arealso reducing tariffs sharply. What sets APEX at the head of the pack leadingliberalization is it wiliness to extend benefits of membership to everyone.APEX is willing to extend the benefits of cuts in tariff and non-tariff barriersto all countries willing to make comparable cuts. This is a major incentive forall countries because the Pacific Rim is the fastest growing market in the worldand large profits are to be made ther e.To put these cut in trade barriers in perspective lets look at thecompany Chrysler. Chrysler is introducing a right handed drive version of theneon subcompact to the Japanese consumer. Chrysler plans to sell 4,000 units attheir 200 show rooms. They are hoping for even more success with the righthanded versions of the Voyager and Wrangler which they plan to introduce nextyear. With Japanese subsidizes on exports which lead to a high price onJapanese domestic goods, Chrysler should be very competitive.Liberalism in trade, though progressive vary a lot with area. TheEuropean Union consisting of the countries of western Europe have established afree trade zone between themselves but those areas outside the sum deal with