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Custom Trade Liberalization Schemes essay paper sample

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Global liberalization of trade laws has been pressure towards many social and economic changes. They allow trade of goods and services across international borders with fewer restrictions (UNCTAD/WTO., 1999). This has been a significant factor in the present economic growth. Some other impacts caused by trade liberalization schemes are given below.

The impact of global liberalization agreements in the development of domestic laws is the emergence of improved availability of consumers outside the United States (Guzman & Sykes, 2007). Lowering the barriers of trade has led to a wider consumer choice. There has been increased job creation. The expansion of the export companies has caused growth in the overseas market leading to the creation of more jobs (Plunkett, 2008). Ten percent of all U.S jobs depend on import (World trade materials, 1991). There is an increase in commodity production that helps the country to achieve comparative advantage. This has led to improved public facilities and increased employment rate. The living standards of the American citizens have improved due to a wider range of products (Nora Haenn, 2006). This has fostered economic growth and efficiency in resource allocation.

The respective countries have received foreign exchange gains due to currency from trading with other countries. This increases the real income hence more productivity and more efficient production levels (Roger D. Norton, 1992). International trade cycles have affected some economies negatively since the consumers are vulnerable to the downturns of the trading partners. Countries with surplus products dump them on the world markets at low costs (Johan Norberg, 2003). Development of new industries is difficult due to the competitive environment of the market (Baldwin & Gellatly, 2003). Counties without short-term protection policies have a disadvantage in the competition (Krueger, 1996). Infant industries cannot enjoy economies of scale. Free trade also leads to pollution and other environmental issues.

Seeing as there is enough impact on liberalization on a global level, the research paper seeks to dig deeper into what some of these impacts are, in relation to the domestic laws of member countries. The paper will survey the effects that the schemes have caused in the member country/ state constitutions and will conclude by analyzing whether the effects are positive or negative. Such questions as "how much impact has caused, and to what extent it has affected different sectors of a country" will be analyzed.

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