¿Cómo se aplican las perspectivas del comercio internacional?

Comparative advantage illustrates how nations should focus on producing goods or services where they have a lower opportunity cost, enabling efficient resource allocation. Through specialization and international trade, countries can optimize output, foster innovation, and raise living standards by accessing products they wouldn't efficiently produce themselves.

Countries gain comparative advantage in international trade by specializing in the production of goods and services where they have a lower opportunity cost compared to other countries. This concept is based on the economic theory of comparative advantage, which was first introduced by economist David Ricardo in the early 19th century. Comparative advantage is a key driver of international trade, as it allows countries to efficiently allocate resources and benefit from specialization.

A typical advantage of developing countries is the lower cost of labor in basic skills. Textiles and apparel manufacturing is a well-known example of such an upper hand. However, a very interesting case is when that inexpensive labor in fact moves to another country as it happens in many Latin-American countries that “export” cheap labor into the U.S. Although the comparative advantage may seem lost, these countries receive in return huge amounts of remittances from millions of expats. For example, the small country of Guatemala in Central America: remittances received in 2022 were roughly the same as its total exports (~US$18B = 19% GDP). The economic and social impact of this phenomenon cannot be ignored when analyzing these economies.

The comparative adventage is a limited concept in today’s economy and trade flow. Due to the high volume of international goods and services being exchanged between countries nowadays, the comparative adventage can apply to a country’s whole production but not necessarily must be applied to every industry within one country. The state of worldwide trade nowadays allows specific industries within countries to excel even in fields they don’t have a comparative adventage on. If these industries get to supply products or services that cover the industries demmand via volume, product differentiation, commercial promotion and marketing activities, they can develop in trade even when they are not the strongest competitiors in cost of opportunity.

Absolutely, you've highlighted some of the key trade-offs associated with trade barriers. Trade barriers are government-imposed restrictions or measures that make it more difficult or expensive to trade goods and services across international borders. While they might aim to protect domestic industries, they can lead to several negative consequences: 1. Reduced Consumer Welfare 2. Inefficiencies 3. Limited Choices 4. Retaliation and Trade Disputes 5. Impact on Exporting Industries 6. Loss of Comparative Advantage 7 . Reduced Economic Growth 8. Increased Corruption 9. Higher Costs for Businesses It's important to strike a balance between protecting domestic industries and reaping the benefits of international trade.

A complex area with no simple answer, it requires a thorough understanding of the potential impacts. While there might be short term benefits, such as the protection of a developing industry, in the long run they do more harm. Trade barriers (and other artificial restrictions) are often used for political gain and sometimes have the same effectiveness as that of putting a plaster on a cracked dam wall. The real focus should be on education, upskilling and creating a favorable investment environment, which will have far greater benefits than trade restrictions. More often than not such restrictions reinforce inequality and impede development by protecting the incumbent minority from competition, holding back innovation and economic growth.

In this context its also important to understand the role of the world trade organization -WTO. Foundational guidelines of the wto aim to direct towards a more open world, as it increases broad based welfare. To put into practise they use a few levers (reciprocity, most favoured nation etc) for members to abide by so as to impede trade barriers to only the essential. Ofcourse in practise this maybe different as countries may have different prioties beyond trade to make certain policies.

Our work at the Development Academy of the Philippines (DAP) on regulatory reform touches on the need to streamline regulations particularly on the certification of locally-produced goods whether traded as input or throughput items or as consumer/end-user final products. With the emergence of the ASEAN Economic Community (AEC), a more uniform set of regulations within the region in line with the single-border arrangement of our countries becomes all the more urgent and necessary, and we have placed ourselves at the disposal of the Philippine government's trade staffs on such back-end activities as research and strategizing. We can do the same for our other free-trade arrangements such as APEC and the ASEAN-plus communities.

Trade barriers are now almost entirely a matter of non-tariff barriers, and these have multiplied relentlessly. At the beginning of 2000, US, EU, China and Japan between them had 1901 NTBs in place, according to WTO count. By 1Q22, these same economies had erected 14,911 NTBs in order to protect themselves and hamper international trade. In 2022, WTO stopped releasing the data. Perhaps through sheer embarrasment.

While working on Regional Integration with COMESA countries (Eastern and Southern Africa), I realised how efficient trade (and investments) agreements can improve intra-african trade. It can also increase trade with partners like EU and USA. 3 key factors: peace, infrastructures and justice.

The nature of trade agreements, particularly regional trade agreements has changed recently, with countries now embracing deep trade / WTO Extra agreements - essentially covering trade items that were not clearly enviaged in the initial WTO rules .This is a direct effect of the changing global trade dynamices.

Yes, trade agreements can indeed bring about numerous benefits to economies, such as increased market access, reduced tariffs, and the promotion of economic growth and job creation. However, they can also give rise to challenges and controversies, particularly for certain sectors or groups. To address these challenges and controversies, it's important for policymakers to take a comprehensive approach. This includes considering the potential impacts on various sectors and groups, implementing appropriate safeguards and transition mechanisms, engaging in transparent negotiations, and providing support for affected communities.

When it comes to Trade Agreements, something to remember is that there are always winners & losers. Thus, learning how to play the game within an organization or industry is important to achieving the benefits a trade agreement can provide. Also, applying the mechanics is important. There is a difference between knowing your country or good is qualified for a FTA & then reviewing certificates of origin and developing the methodology for a trade program in house so that it is audit-proof. Just as financial transactions are audited the customs authorities of each participating member country of a specific FTA can audit your processes.

Global trade dynamics, shaped by political decisions, often hit ordinary individuals and businesses. These individuals, not politically involved, strive for business optimization. Complex supply chains mean disruptions can affect even small manufacturers. Sanctions, while targeting specific entities, harm civilians by limiting access to essentials. SMEs, economic pillars, struggle to adapt. However, businesses are resilient, diversifying and exploring new markets. Governments must recognize these consequences, offering support. Compassion and inclusivity in trade policies foster a more equitable global economy.

Trade models have been key to shape and understand international trade within the academics. In practice, we’re using different metrics like macroeconomics, politics, currency exchange and even sustainability barriers and impacts to understand the dynamics of current trade. The next trade model must include qualitative and quantitative variables such as cash flow within the country, trade agreements, political climate, sustainability issues and even geopolitical tendencies.

No matter how accurately a trade model is built, at the end of the day it's still a model. Unexpected external shocks, regulation and politics still dominate the arena. Historically, countless conflicts and diplomatic issues have a strong component of emotion and irrational behavior. Human beings are very hard to model.

We need a theoretical model of international financial flows driven by a wide variety of factors, including rational investment, speculation, capital flight, fads, panics, mercantilism, the desire for safety, and so on. It’s very difficult!

Trade indicators are essential tools for assessing the dynamics of international trade and understanding the economic landscape of a country or a region. They provide valuable insights into the performance, trends, and challenges of trade relationships. 1. Trade Surplus/Deficit 2. Price Changes 3. Degree of Integration 4. Competitiveness of Sectors 5. Balance of Payments 6. Export and Import Growth 7. Trade Partners and Diversification 8. Trade Intensity Index 9. Trade Volume and Value 10. Terms of Trade By analyzing these trade indicators, policymakers, economists, and businesses can gain a deeper understanding of trade dynamics, identify challenges, and formulate strategies to enhance trade performance and economic growth.

One may get an indication of the trade policy applicable across various countries based on the concession levels offered. -The bound tariffs/ bound commitments at the WTO by any nation represent the highest tariff or the conditions of trade that will always me maintained by the nation. - The applicable/MFN tariffs represent the actual level of tariffs or trade conditions actually imposed by the nation which may be more liberal than the bound levels. -The preferential tariffs or preferential conditions of trade is what the nation offers in case of a regional trade agreement. A nation may offer another country more liberal access within a free trade agreement. The preferential trade policy applicable under different agreements may vary

Un aspect majeur devrait être pris en considération la geopolitique. Ce qui se passe actuellement dans la région du Golfe en est la preuve où l'instabilité au moyen orient impacte énormément sur le commerce mondial.

Putting all those concepts in operation in order to build a global supply chain based on benefits (comparative advantages and preferential trade agreements) and risk mitigation (regulatory, political or natural disasters for example).

Use your network as a point of information if you are considering international expansion for the first time or for new territories, they can provide valuable feedback on their own experience, also, your company might be member of an industry association, these associations usually have experts on such topics or can provide contacts inside their network for experience exchange, or have contact with consulting firms specialising in these exact topics (there are a few of them who would speak your company language and know your local regulations as well as the new country‘s culture, language and regulations and treaties).

Resource Endowments: Natural resources, labour availability, and technological capabilities influence a country's comparative advantage in certain industries. Nations endowed with abundant resources may specialise in resource extraction and export-oriented industries, while those with skilled labour may focus on high-tech manufacturing or service sectors. Exchange Rates: Fluctuations in currency values can impact trade flows, affecting export competitiveness and import affordability for businesses and consumers. Technological Innovation: E-commerce platforms and digital payment systems have opened new avenues for small businesses to engage in international trade, while also posing challenges related to data privacy and cybersecurity.