Foreign and companies (CITE). There are advantages

Foreign trade can be defined as the import and export of goods, resources and services from nation to nation. There is a scarce amount of countries that are self sufficient, leaving most countries to rely on other nations. Foreign trade includes many agreements made by similar nations looking for a similar outcome. These types of agreements can be in the form of laws which help regulate the the trade. The amount of trade made in a country can be measured by the growth domestic product (GDP). The GDP is the absolute value of all things produced by all people and companies (CITE).  There are advantages and disadvantages to the transporting of trade. Some benefits of foreign trade includes providing jobs, improving quality of life and empowering women around the world. These benefits have created opportunities for citizens of many nations including developing countries. Although these beneficial factors of foreign trade have allowed worldwide improvement; there are factors of foreign trade that are negative. This negative factors include neo colonialism, non diversified economies and exploitation of the poor. In this research paper foreign trade with further explained, using the thesis: Is foreign trade an effective tool for developing countries to succeed? Background History : Trade as been a common practice between early settlements and communities. The first recorded and organized foreign trade dates back to 3000 – 1000 BC. This trade is a describe as the first waterborne traffic. Imports and exports made by boat allowed coastal trade to pave a way for early society. Coastal trade increased human connections and advanced wealth. During 5th – 15th century, wealthy kingdoms in west africa became successful on trade instead of conquest. This new rise to power allowed peaceful reign over west africa. Since the 19th century, world wide establishment has occurred in order to clearly define what foreign trade is. New technological advances encouraged the trade at this time. Only 10% of global production was imported and exported across nations at the turn of the century (CITE). As the foreign trade grew popular, annually worldwide trade went up 3% starting in 1913 (CITE). As the rise of nationalism came into play during the first world war the need and want for foreign trade was limited. By 1929, industrial production and foreign trade decreased by 40% eliminating almost all trade by World War II (CITE). After years of struggling, economic failure and highest poverty levels seen trade agreements were put in place, looking to make international improvements. The North American Free Trade Agreement created in 1992, was an agreement put in place that eliminated tariffs and barriers which would lead to cheaper goods and ultimately improve economic growth. This highly controversial agreement has left tension between countries to this day. On January 22, of 2018 President Donald J. Trump approved and announced a new tariff tax on solar power (CITE). This could cost the USA over $400 million dollars in taxes. Most of the solar industry is against this agreement, because this tax does not benefit the solar companies and customer. An agreement that followed quickly after NAFTA, was the European Union, to this day the European Union is one of the most influential traders in the world. 16.5% of all import and exports is done by the European Union CITE. The EU,  exports to around 100 countries, making it the largest manufacturer of goods and services. This group of countries has multiple agreements put in place in support of foreign trade. For example, The European Free Trade Agreement has allowed developing countries to work alongside with that you creating jobs around the world.  Ultimately these trade agreements, both NAFTA and the EU look to create better trade through little to no taxes on imports and exports. These types of agreements have also allowed countries around the world to participate in foreign trade. Currently 50% of all Global Production is exported and imported from Nation to Nation. this could only be possible through international trade. Although, foreign trade has been defined and redefined throughout the centuries, one thing that stays the same is no Nation is self-sufficient and can fully Thrive alone.  Allowing nations to work together could only be possible through foreign trade. Beneficial Factors of Foreign Trade towards developing countries:Empowering Women in developing countries through trade Discrimination against women in the workplace is highlighted and hot topic in Western world media. In developing countries, increased foreign trade creates more opportunities for all workers including woman to lead a self determined life. Foreign trade has become an effective tool for women in developing countries. In the past 20 years multiple companies have been put in place that allowed foreign trade to empower women. One of these companies is based in the Middle East and is called Fashion ComPassion. This company has partnered with multiple organizations and designers that directly work to create social change. This could only be possible with foreign trade because the need for ethical empowerment is world wide. As over 53,000 syrian refugees land in at camps in Lebanon and Jordan a designer that is partnered with Fashion Compassion is Palestyle. This brand is known for its high end accessories adding “traditional embroidery and designs” (CITE). The partnership has employed over 100 women from camps allowing these women to trade goods and show off talent empowered them through trade. Palestyle has invested into The Water Tank Exchange in which has helped bring clean water to 4,000 refugees (CITE). Another group looking to empower women through foreign trade is Rags2Riches. this group specifically targets one of Payatas Largest form of trade. Many women in Payatas are skilled rug Weavers led by middle men who leave them with little to no pay. Payatas Poverty Alleviation Foundation says “40% of active population is unemployed and nearly half of them earn about 4,000 Philippine pesos ($100 USA) a month.” Rags2Riches empowers over 400 women, who turn scraps into high end rugs. These rugs later being traded internationally. Both of these companies Show evidence that foreign trade empowers women. Develops sustainable relationships between nationsDeveloping countries benefit from foreign trade because trade promotes peace through relationships. According to Frederic Bastiat “If Goods don’t cross borders, soldiers will.” This saying, would famously go down in history because of the truth it rang. The University of Texas put this phrase to the test, by comparing the amount of trade a country makes compared to the probability of conflict in a country. Using dyads to analyze international  relations between 1960 and 2000, what was found was countries with fewer tariffs and quotas and more free trade we’re less likely to be a part of War. One of these countries being the United States. One of the reasons the United States can be labeled as one of the most powerful countries ts because of the amount of trading done between country and the United States. Trading with so many countries has allowed the United States to create relationships. These relationships have kept wars from starting.  According to the Office of the United States trade representative the United States trades with 75 countries. Developing countries that increase the amount of foreign trade could increase peace across nations and stable relationships. Provides Jobs Foreign trade propels economic growth through job creation in developing countries. As an example, the second most traded commodity in the world is the coffee and this creates economic opportunity for people all over the world. Coffee is grown in southern climates and highly consumed in the north. Foreign trade provides jobs in developing countries by encouraging the development for not only growing the coffee but seeing the full process done in locally countries. As an example, 1 lb of unprocessed coffee beans is worth one dollar, while 1 lb of roasted and processed beans is worth 8 dollars (CITE). Foreign trade policies that allow fully roasted and processed coffee to be traded international can lead to more jobs in developing countries. The lead importing countries intake a large amount of green beans every year. For the United States and Canada have no tariffs on roasted coffee beans which encourages companies to employ people in the developing countries to do the more valuable work there. Some countries like russia and switzerland tax roasted coffee, while not taxing green coffee beans which encourages countries to keep the jobs in these countries rather than in developing countries. Which more open foreign trade, drives more jobs into developing countries. Another example of economic growth through job production in developing countries is the Company Toms. Toms is a business built on a one for one marketing concept. For every pair of shoes that tom sells in the developed world they give a pair to someone in a developing country. This company alone has distributed 35 million pairs of shoes (CITE). Initially the shoes Toms were making were manufactured in china. These shoes were then were distributed for free in 60 developing countries by Non-profits on the ground. The problem with that is it removed the local shoe industry in these countries. Today Toms has shifted there production of these shoes to many of the countries they disrupt in. By setting up ethical factories in these countries where the production of the shoe is now done, then be distributed locally. This not only provides jobs but lowers the cost for Toms it reduces international shipping charges. The complexity of companies such as Tom’s, is only possible through foreign trade. Without foreign trade agreements, these shoes would not be able to be distributed around the world and this company would not be able to  do business in so many places. Ultimately, foreign trade produces jobs in developing countries which is an effective tool for economic growth. Negative Impacts of Foreign Trade :Economic Colonialism Neocolonialism can be defined as an strategy wealthy nations use to impact less developed countries. Economic colonialism is the exploitation of developing countries; instead of taking over these countries, developed nations abuse the free markets. Whether the demand is to sell the products to the developing nation’s citizens or to use the the developing nations  resources foreign trade has a direct hand in this. For example, developed nations such as the United States and Japan have traded with countries like Malaysia. Not to further the economic growth for Malaysia but to gain profit at Malaysia’s extent. These developed countries are not looking to raise the quality of life by outsourcing their products. They are ultimately looking for better profit. This can be accomplished through cheap labor and weak human rights and environmental laws commonly found in developing countries (CITE). Foreign trade allows this exploitation because according to WTO since 1995 developing nations have been the highest trade partner discluding asian countries. In 1995 alone developing nations made up 80% of merchandise trade then to 2014 making up 54% of trade (CITE). This high majority of trade being placed in prove eco colonialism to be a negative factor of foreign trade.Non Diversified EconomiesForeign trade can lead to international business choosing to export a small number of products from a given developing country. This leads to developing countries experiencing non diversified economies. Before the high retail store became popular, the term Banana Republic was used to describe a fictional poor latin republic in the book series Cabbages and Kings written by O. Henry. In this book, the fictional land is almost parallel to the Central American country Honduras. Honduras alone estimates total sales of bananas to be around $290 Million a year making up majority of Honduras’s income (CITE). This has greatly affected this country because how much the country makes depends on the performance of the Banana crop annually. Foreign trade has turned Hondura’s into a non diversified country through the importation of Bananas. Middle Eastern Countries have a non diversified economies due to the oil trade. For some countries fortunate enough to have the correct geographic “luck” oil and gas create wealthy nations. For nations, without the geographic wealth the economy will fall into poverty and economic decline. According to the International Strategic Analysis “Due to the lack of economic diversification across most of the Middle East, the region’s economy has been battered by the sharp fall in oil prices over the past two years.” For example, annaly middle eastern countries economies lost anywhere between $500 billion and $600 billion dollars in export revenue because of the decline in price of oil (CITE). Countries with an over dependence on oil exports are seeking to diversify their trade to better deal with the volatility of oil prices. Just how countries are not self sufficient, nations cannot rely on trading one form of good. Which is why foreign trade could negatively impact developing countries through lack of economic diversification. Exploitation of the Poor Foreign trade promotes hierarchy among developed nations which leads to exploitation of the poor. One form of exploitation in sweatshops and child labour. In developing countries alone an estimated 168 million children ages 5-14 are forced to work in unethical workplaces (CITE). This is a negative factor of foreign trade because it puts children at risk for profit. Most products produced in sweatshops are clothing, cotton, bricks and coffee. Countries who regularly produced these goods are developing countries. Exporting coffee alone brings 20 billion dollars of revenue every year and 90% of coffee is exported from developing countries (CITE). This fast pace and highly extensive work cannot survive without unethical conditions because developing countries rely solely on the export income provided. This creates a cycle of justifying sweatshops to produce high income. ADD MORE

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