How effective is trade in promoting development you may wish to refer Essay

How effective is trade in promoting development you may wish to refer to the experience of ONE or TWO countries in your answer - Essay Example Every region has different specialty and comparative advantages in production of some tradable commodity, which also results in mass production. So trade at the market price gives benefits to both locations. The country export surplus goods and import sparse goods. The basic instances of money were object with intrinsic value known as commodity money. Currency is a standardized form of money which facilitates wider exchange of good and services. While international trade is the same exchange of goods and services across borders. It represents a significant part ofannual GDP in most countries. While international trade has been present throughout much of history and its always considered important for the development of the country in its economic, social, and political way because of industrialization, advanced transportation, globalisation,multinational corporations, andoutsourcing. (Stiglitz, 90) In fact, it is probably the increasing pervasiveness of international trade that is usually meant by the term "globalization". International trade is very essential for the development of the country. There are only few ways from which the Gross income of the country can be increased. The flow of different currencies is as important as producing anything. Trade is a key factor in economic development. Successful use of trade keys can boost a country's development. Trade markets have boomed up due to major contribution which has made the competition of "Survival of the Fittest & Fastest" in today's scenario (Evers and Schrader 76). There are many countries which are known because of their products and services trading. But every individual living in this world knows that China has been the vanquisher of the world's markets for many years. China is a global source for the commodities nowadays and is focusing to improve their international trade. There is tough competition in the market but still China is standing its ground and striving. It has proved that technology is ruling the world and industries are producing electronic goods on its peak. China had conquered the market of many types including electronic toys, utensils, plastics products and many more, all over the globe. In-spite of China staying into the international trade for quite a long time now, it has stood the examination of time and has survived in-spite of neck-to-neck competition in the market. TheFinancial Timesnoted that "China has been the world's largest economy for 18 of the past 20 centuries"1, While according toThe Economist, "China was not only the largest economy for much of recorded history, but until the 15th century, it also had the highest income per capita - and was the world's technological leader."2 As recently as 1820, China accounted for 33% of the world's GDP. Barely a hundred years later. By the early part of twentieth century, China accounted for only 9% of world's GDP. The primary explanation for the relative eclipse of China lies in the fact that the industrial revolution of the nineteenth century, which made Europe and then America rich, almost completely bypassed China3. Foreign tradewas small by international standards but was growing rapidly in size and importance, as it represented 20 percent ofGNPin 1985. Trade was controlled by