International Trade Essay Example | Topics and Well Written Essays - 250 words - 1

International Trade - Essay Example Political realities do influence international trade. Countries that are facing political instability are most avoided for trade as there is great deal of uncertainty there, nobody knows when their policies do get amended and the trading partner has to face loss. Trade barriers such as tariffs and quotas are other political tools that are used by governments to control the amount and composition of international trade happening in their economy (Oh & Reuveny, 2010). There are also some countries that avoid much trade with each other due to their rivalry and differences that eventually affect their economies. India and Pakistan, besides being neighboring countries avoid much trade with each other. However, unofficial trade continues between them for many years amounting around billions of dollars. US has imposed embargo over Cuba (Schwab, 1999); at the same time ongoing trade between mainland China and Taiwan shows an example that trade can even flourish even in the presence of hostile relations (Yu, 1997). This world has now become a global village and there is huge interdependence of countries on one another. Under developed, developing and developed nations all require trade with each other to grow, sustain and flourish their nations. Importance of no nation can be undermine thus limitations of political influence is a better idea. As for today, no nation can survive and grow in isolationism (Fioretos,