This article as the title says talks about breaking down barriers to international trade and benefits of trade facilitation to developing countries. Moreover it talks about reasons of reluctance to implement and adopt facilitation measures by developing countries. Role of trade organizations like WTO, ITC, UNCTAD, World Bank and OECD is also discussed in introduction and implementation international trade facilitation reforms.
Adoption of measures like publishing of import and export procedures, reduction of number of forms, introduction of electronic submission of forms and their output and tackling of corruption at border crossing of goods.
It is argued that implementation of facilitation reforms will result in reduction of procedural delays and transactional cost and ultimately creates economic wealth and a boost to economy especially in developing countries. Trade organizations have introduced a number of measures for international trade facilitation which has resulted in economic development.
HOW DOES THIS ARTICLE RELATES WITH TEXT
This article talks about international trade and facilitation measures to remove barriers to international trade which is a core subject of economics of globalization. It talks about various measures to improve international trade through adoption of high tech facilitation measures especially in developing countries which ultimately results in their economic growth and development and their enhanced role in world economy. Moreover this talks about how trading organizations like WTO, ITC, UNCTAD, World Bank and OECD play supportive role in introduction and launch of facilitation measures to enhance international trade. All these are very much concerned topics of economics of globalization as this all talks about international trade, international trading organizations and their role, benefits to countries and barriers which are needed to remove.
Every day world economy benefits from trade. With a growing population, trade opens up a global market. Countries with surplus of resources sell the surplus to other countries and use the export dollars to buy other goods and services from overseas. People all around the world are eating food, drinking soft drinks, using computers and riding in fast ferries which are made by one end of the world and is being sold in the other end.
This article introduces the concept of facilitation of international trade by adoption of various measures and examines the advantages to trading nations especially the developing ones. On the other hand it also talks about barriers which made countries reluctant in adoption of facilitation measures.
Trade facilitation in this article is defined as a broad range of reforms that aim to streamline the movement of goods and services across national borders. The advantages of trade facilitation are described as 1. REDUCTION OF COSTS OF TRANSACTIONS
Article talks about reduction of cost of transactions of international trade by removal of procedural barriers.
2. WEALTH CREATION
It is argued that facilitation measures result in creation of wealth and a boost to economy. Article data reveals that the Organization for Economic Co-operation and Development has estimated that even a 1% reduction in such "hidden costs" would boost the global economy by $40bn (£26bn), with most of those benefits going to the developing world.
3. INCREASED PRODUCTION
Trade facilitation enables countries to take advantage of efficiencies generated from economies of scale and increased output.
4. CONSUMER BENEFIT
Trade facilitation enhances international trade and ultimately benefits consumers of trading countries. 5. FOREIGN EXCHANGE GAINS
Trade facilitation measures enhance capability of countries to gain foreign exchange and thereby paying their imports. 6. EMPLOYMENT
Trade Facilitation creates losers and winners as resources move to more productive areas of