Global trade is the import and export of goods and services across the boundaries of countries and even continents. This trade is essential in the supply of the commodities that one place may be lacking while at the same time making maximum utilization of the resources that one country has in abundance. There are several restrictions that have to be taken as precautionary measures that help in the control and management of the trade. Freight transportation, on the other hand, is the movement of goods and services from one place to another (Newman et al, 2017). It allows for the goods that are produced from one place to be consumed in another place. There are several policies that are all meant to regulate the freight of goods across the nations as well as the modes of trade that are allowed by the law. They are known as global policies and they affect all the countries that are involved in a particular trade. The laws set the course that the actions are supposed to be carried out and act as a scale for regulating it to reduce any adverse effects that may come from it. This paper is a comparison and contrast between the European and North American freight transportation systems, globalized trade and global policy implications.
There are several modes that are used in freight transportation namely; truck, rail, marine and pipeline. Among the major means that are used in ferrying goods is the railway systems. There are several differences that arise between the European and the North American railway systems. The railways in Europe are the property of the national state. The companies that are in the nation have equal access to the railway systems. It makes it easy for even new companies to join in the international trade due to the equal rights that all the members have. In contrast, however, the railway system in North America is owned by private operating firms and organizations. The organizations own the railway stations and manage the entry and exit of members in and out of the freight market. As a result, there are several parties that have higher opportunities of joining the trade according to the preferences of the organizations (Clausen & Voll, 2013). North America also has a separate system of railways for freight market while in America, the same rails that are used in the freight are used for passengers.
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There are several policies that have been applied in the enhancement of international trade both in Europe and in North America. In Europe, there exists the European Community (EC) and in North America, there is the North American Free Trade Agreement (NAFTA). The two policies share the intent of increasing preferential trade among the member countries and at the same time enlarging the scope that the trade can be carried out. However, the policies have some differences as explained below. The EC was set up to increase the cohesion and agreement in terms of political terms using economic means. On the other hand, NAFTA was set up to increase the economic status of North America and reduce the political influence to a minimum. In addition to that difference, the economic agreement caused by the European Community is far more superior compared to that caused by NAFTA. The difference between the richest and the poorest countries in the European Community is very little as the data between Portugal and Germany gives a ratio that is between 1 to 5. In NAFTA however, the gap between the poor and the rich ranges on a ratio of 1 to 10.
In addition to that, there are several global policies that have been implemented both in North America and Europe. The policies have implications on the international trade both positive and negative. The part that interested me is the removal of tariffs for international goods. The act has both positive and negative effects on the members involved in the international trade. It enhances international trade since it is easier to export and import commodities from other countries (Weintruab, 1992). It may also lead to the destruction of internal companies as they are faced with severe competition from imported products. Due to the above reason, it is essential that only tariffs that limit non-competitive goods be removed. International trade is essential in the growth of the relationship between countries. It also makes it possible for the countries to get commodities that may not be readily present in the interior of a nation. It is therefore essential for policies to be put in place to regulate the trade.
References
Clausen, U., & Voll, R. (2013). A comparison of North American and European railway systems. European Transport Research Review , 5 (3), 129.
Newnam, S., Goode, N., Salmon, P., & Stevenson, M. (2017). Reforming the road freight transportation system using systems thinking: An investigation of Coronial inquests in Australia. Accident Analysis & Prevention , 101 , 28-36.
Weintraub, S. (1992). North American free trade and the European situation compared. International Migration Review , 506-524.
