Advantages Of Technology In International Trade :: Free Essay Writer

Technology plays a major role in international avocation. Databases,overnight delivery and faxes have opened the globe grocery store to not only largercompanies but small ones too. To add to this globalization, companies and even offcompetitors are combining and forming alliances to cut cost and increase theprofit margin. Chrysler, universal Motors and Ford have formed an alliance inresearch and emergence to avoid duplication. These alliances are not onlywith domestic companies but they in addition go over national lines. Companies arepushing for integration of the world economy in hope for increased profits andgovernments are germ to listen.Since 1986 (GATT) General Agreement on Tariffs and Trade have taken the insurgent to move towards the liberalization of international trade. GATTmembers agreed to reduce tariff and non-tariff trade barriers. From 1986 to thepresent due to GATTs star topology many markets have been open to the fall in Statesincreasing exports and incre asing efficiency through competition.One of the most truculent liberalization groups to follow GATTs leadis APEC (Asian Pacific Economic 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 neighborhood by 2010. APEC is moving towards this goal throughmany means including accelerating initial Japanese tariff cuts by 50%. Chinawill overly 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 trailliberalization is it wiliness to persist in 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 maturement market in the worldand large profit s are to be made there.To put these cut in trade barriers in prospect lets look at thecompany Chrysler. Chrysler is introducing a right hand sire version of theneon subcompact to the Japanese consumer. Chrysler plans to sell 4,000 units attheir two hundred 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 atomic reactor with area. TheEuropean Union consisting of the countries of western Europe have established afree trade zone between themselves but those areas outside the marrow deal with