International Trade Debate

Advantages of International TradeName XXXXXSchool XXXXXProfessor XXXXXClass XXXXXIntroductionThis discusses briefly the advantages of international trade through valet de chambre Trade composition (WTO ) membership using the petrochemical sedulousness of Saudi Arabia as a case in pointAdvantages of WTO MembershipSaudi Arabia has a proportional degree advantage of producing petrochemicals over unknown competitors because of the relatively tawdry costd inputs e .g , feedstock - interior(prenominal) investors pay less than the export price of feedstock since the house servant market does not require an export marketing stand (Global Investment menage , 2008 . With this cost advantage , the country gains more(prenominal) than from its membership to WTO through (1 ) Increased international competitiveness of the petroche mical grasp . The tariff reduction requirement for all WTO members has opened contrary markets , particularly tariff-protected markets like US and Japanese markets , to Saudi Arabian petrochemical exports . The cheaply-priced exports relative to the products of its foreign competitors have increased Saudi Arabia s export earnings on petrochemicals (Al-Sa doun , 2005 (2 )Improved domestic competitiveness of the petrochemical industry With cut back tariff , Saudi Arabia has opened its market to trade petrochemical products . This stimulates hefty competition among petrochemical producers as they compete for a overlap in the domestic market . This competition ensures products of low price and tall quality that matches or even exceeds that of the world standards . In the short-run , this may result to a narrower profit brink on local sales but will make capitulum the competitive capacity of Saudi petrochemical industry in the yearn (Al Zuhd , 2005 (3 )Increased anti-dumpi ng protection .

Saudi Arabia can use the WTO quarrel closure mechanism against any anti-dumping duties or other barriers in the foreign markets on its petrochemical exports of Saudi Arabia (Al Zuhd , 2005ReferencesAl-Sa doun , A (2005 . The advert of Saudi Arabia s plus to WTO on petrochemical industries . Arab News . Retrieved June 23 , 2008 , from hypertext transfer protocol / web .arabnews .com ?page 6 section 0 article 74580 d 12 m 12 y 2005Al Zuhd , T (2005 , blood 11 . Saudi Arabia s accession to the World Trade cheek : a quick assessment of its economic commercial contact . Saudi Commerce and sparing Review . Zaywa . Retrieved June 25 2008 from http / entanglement .zawya .com /printstory .cfm ?storyid ZAWYA436 l 000 000 051211Global Investment House (2008 . Petrochemical industry - Saudi Arabia economic and strategic outlook . Global Investment House Economic Report Retrieved June 24 , 2008 , from www .tradearabia .com /news /downloadmktreport .asp / seeded musician /Market_Ana lysis /Market_Analysis127 .docInternational Trade PAGE 3...If you want to get a liberal phase of the moon essay, order it on our website: OrderEssay.net

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