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Trade Issues In Economic Development Term Paper

" (Kaufman, "Banking And Currency Crises And Systemic Risk: Lessons From Recent Events") World Banks

Trade requires capital. There are approximately two hundred financial institutions throughout the worldwide that account for more than eighty percent of the world's total international banking exposure. Of these, there are twenty banks that have exposure of more than ten billion dollars and seven of them are from the United States, four are from the United Kingdom, three are from West Germany, three are from France, two are from Japan, and there is one from Canada. "The borrowing countries still have much to do at the macroeconomic level to enforce reasonable demand-management policy and at the micro-level to achieve savings mobilization and better sectoral allocation in a context of lesser government controls. In turn, private and official creditors have a special responsibility to stand ready to assist genuine adjustments efforts with the needed long-term financing." (Boon-Chye, The Economics of International Debt Renegotiation: The Role of Bargaining and Information)

Of the remaining two hundred, the vast majority of them have exposure levels below the three billion dollar mark. But, this still implies that throughout the world, international banks have provided loans of more than six hundred billion dollars in the emerging and third world countries. "The banks knew, of course, they had lent money to Mexico, the Philippines, or Zaire through trade-related credits, interbank lines, and syndicated loans. They lacked, however, a clear knowledge of these countries' financial, economic, and social conditions and the actual use of the loan proceeds. Still less clear were the long-run prospects of the borrowing countries." (Bouchet, The Political Economy of International Debt: What, Who, How Much, and Why)

This measure encompasses all debt including international debt, gross disbursed and outstanding debts as well as short- and long-term loans owed to the industrialized nation creditors. "The current crisis of developing countries' external indebtedness reflects crisis of economic development, the international financial system, bank management, and economic thinking." (Bouchet, The Political Economy of International Debt: What, Who, How Much, and Why)

Globalization

Globalization by most is considered to be good for creating global wealth and also considered a positive development for emerging nations. The world has begun to operate more like an entrepreneurial spirit as more individual freedoms are realized. Open competition and trade in the world markets leads to reduced pricing, creation of new opportunities for innovation while enabling organizations and nations...

There are always those nations how enter the international spectrums through corruption and incompetence or simply do not take into consideration the affects they may have on a locality or the global economy. There problem is that there are no true 'all powerful' regulatory bodies available to regulate international conglomerates and world trade.
One major concern therefore with world trade and globalizations relates to a simple question -- how can we regulate the process without stopping or slowing it down? World trade and globalization have altered economic and social processes just by how easily capital can be relocated.

Conclusion

In conclusion, this report attempted to present insights into trade issues as they relate to economic development, globalization and developing countries. Our business environment has become a highly competitive and technologically advanced global circle. Modern day global trade has the advantages of modern communications, transportation and containerization and our airplanes, ocean transports, satellite communications, and even cell phone allow us to overcome past historic barriers.

References

Allen, Roy E., et al. (1999). Financial Crises and Recession in the Global Economy. 2nd ed. Cheltenham, England: Edward Elgar Publishing.

Boon-Chye, Lee. (1993). The Economics of International Debt Renegotiation: The Role of Bargaining and Information. New York: Westview

Bouchet, Michel Henri. (1987). The Political Economy of International Debt: What, Who, How Much, and Why. Westport: Quarom Publishing.

Fatemi, Khosrow. (1988). International Trade and Finance: A North American Perspective. New York, NY: Praeger Publishers.

Fatemi, Khosrow. (1988). "International Trade and Finance: A North American Perspective." New York, NY: Praeger Publishers.

Foss, Brad. (2004). "Oil Prices Close In On $50 A Barrel" Associated Press.

Hoekman, Bernard M., et al. (1995). The Political Economy of the World Trading System: From GATT to WTO.: Oxford University Press.

IMF. (2003). "Effects of Financial Globalization on Developing Countries: Some Empirical Evidence." Retrieved on 24 April 2005, from http://www.imf.org/external/np/res/docs/2003/031703.pdf

Kaufman, George G. (2000). "Banking And Currency Crises And Systemic Risk: Lessons From Recent Events." Economic Perspectives.

Stanley, Bruce. "China, U.S. Lead in Demand for Oil." Associated Press: 10 Dec. 2003.

The World Bank Group. Ed. The World Bank Group. Retrieved on 24 April 2005, from .

Sources used in this document:
References

Allen, Roy E., et al. (1999). Financial Crises and Recession in the Global Economy. 2nd ed. Cheltenham, England: Edward Elgar Publishing.

Boon-Chye, Lee. (1993). The Economics of International Debt Renegotiation: The Role of Bargaining and Information. New York: Westview

Bouchet, Michel Henri. (1987). The Political Economy of International Debt: What, Who, How Much, and Why. Westport: Quarom Publishing.

Fatemi, Khosrow. (1988). International Trade and Finance: A North American Perspective. New York, NY: Praeger Publishers.
IMF. (2003). "Effects of Financial Globalization on Developing Countries: Some Empirical Evidence." Retrieved on 24 April 2005, from http://www.imf.org/external/np/res/docs/2003/031703.pdf
The World Bank Group. Ed. The World Bank Group. Retrieved on 24 April 2005, from <http://www.worldbank.org/>.
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