International trade facilitates the eradication of inequalities evident between emerging nations and Western economies. Cross-border commerce highlights new opportunities for development (Europeanmovement.eu, 2015). Merchandise trade culminated in revenues totaling a value of US$19.48 trillion as per the statistics attributable to 2018. Regardless of its positive effects, global transactions indicated a reduction in 2018. Moreover, economists affiliated with the WTO a reduction in volume growth at a rate of 2.6% as of 2019 in comparison to 2018’s margin of 3%. Even so, scholars indicate positive prospects for developing economies in accordance to the projections made for 2020 with a propensity to rebound at 3% (Wto.org, 2019). The current paper aims at establishing the impact of trading internationally on Eastern Europe, India as well as China. In addition, it endeavors to provide a 20-50 years forecast for the three regions.
The impacts attributable to international trade
Eastern Europe
International trade has positively impacted Eastern Europe particularly after the crisis which prevailed from 2008 to 2009. The region registered an economic growth at a rate of 5.5% as of 2011 (Intracen.org, n.d.). However, such changes occur gradually as opposed to other developing regions. Eastern Europe predominantly thrives on providing low goods that require some value addition and materials to environments with volatile commodity movements. As a result of an improved economy, the people residing in East Europe have registered some progression socially. UNECE’s statistics comparing data from 1999 indicates a reduction in poverty levels for 18% of the region’s inhabitants. The percentage accounts for 480 million people.
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India
India extensively thrives on its agreements which facilitate trade with other nations. By the end of 2018, its revenues totaled over $300 billion. Moreover, the country imported goods and services worth $460 billion. However, India indicates a modification in the commodities offered in various international markets. As opposed to predominantly dealing with textiles or agricultural communities, the nation currently focuses on engineering goods. The registered and increment by a rate of 16% as opposed to the initial 12% (Jha, 2019). Moreover, India has increased its production of pharmaceutical products which positively impacts its economy. In addition, Indian partners offer back-office services owing to their technological know-how. Thus, trading on the global arena has led to India specialization in specific areas which highlight its comparative advantage. The services and commodities offered by India have resulted in the region’s economic development as a result of earnings from foreign exchange. Moreover, it has provided an impetus for market expansion. Thus, the country has registered and increment in its manufacturing activities and the number of investors interested in specific ventures. Under such circumstances, it has become possible for India to reduce unemployment among its residents.
China
Trading with other nations has greatly increased China's market for manufactured commodities. From 1990 to 2004, China registered economic growth at a margin of 10% on a yearly basis. International trade accounted for such growth at a rate of 45% owing to its exports. As a result, the nation surpassed formidable economics such as Germany. In 2007, estimates indicated that China acquired revenues value $2.17 trillion owing to foreign trade. China's e-commerce undertakings have fostered an overall improvement in the assortment of commodities provided in its domestic market. The country predominantly imports machinery, chemicals, apparatus and various forms of fuel. Attaining such commodities mandated agreements with nations such as Australia, the United States, South Korea, countries affiliated with the European Union, Taiwan as well as Japan. Hence, Chinese consumers have a wide variety of items to choose from (Tian et al., 2019). In addition, it has increased competition levels for operating enterprises. Under such circumstances, it becomes easier for customers to purchase lower-priced items. For example, renowned automobile manufacturers such as Toyota and its counterpart General Motors cater for Chinese clients while at the same time facing intense competition from domestic companies. Increased transactions with other nations provide employment opportunities which improve the living standards of China’s inhabitants. Furthermore, it provides an impetus for improving the locally available amenities which cater to China’s citizens as well as international companies. An increment in the levels attributable to domestic trade has resulted in the development of trade unions focusing on different industry sectors operational in China. Such bodies facilitate the efficient distribution of social benefits for its members.
Future projections for 20 to 50 years
Eastern Europe
The region must focus on increasing the capacity of its SMEs. As a result, they can operate efficiently and capitalize on the system which facilitates global trade. In addition, Eastern Europe must undertake initiatives aimed at developing effective regional networks. As a result, it becomes easier to convince foreigners to engage in economically viable transactions. Improving the structure implemented to offer financial as well as legal aid increases the propensity of Eastern Europe to attract foreign investors (Intracen.org, n.d.). The acknowledgement of the positive impacts of trading internationally has led to efforts by Eastern European countries to form networks that facilitate commerce efficiency. For instance, Russia joined the WTO. In addition, Belarus, Russia as well as Kazakhstan formed the Common Economic Space to fortify their involvement in avenues necessary for regional coupled with international trade. In future, the region indicates an increased propensity to form movements which improve their impact on different global markets. Moreover, Eastern Europe policies underscore its inclination to engage in sustainable undertakings that will ensure that global trade yields long-lasting positive effects in the region.
India
Regardless of India's increased focus on specific commodities which appeal to international markets, its populace still thrive on agricultural pursuits. Estimates indicate that 90% of Indians engaged in agriculture on a small scale. In addition, a majority of those residing in the region rely on their employment opportunities available in different informal sectors. Thus, the country must change its outlook to facilitate an improvement in its Human Development Index. Moreover, the government which operates in India continuously participates in bilateral talks to facilitate trade with partners originating from Asian countries. In addition, the dispute between China and its counterpart the United States could positively impact India's undertakings with respect to trade. However, such prospects only become evident in circumstances where Chinese producers register a reduction in their overall competitiveness.
China
China ranks amongst the nations with a high rate of economic activities among developing countries. Future projections underscore the nation's propensity to significantly impact commerce globally within a span of 30 to 40 years. As part of its strategy to capitalize on the market available globally, China intends to implement policies which favor trade initiatives. Such regulations would support the nation's ‘open door’ legislation implemented in 1978 (Yao & Whalley, 2016). In such circumstances, it would become easier to expand relationships with other capitalist economies. Part of China’s reforms involved gaining membership to the World Trade Organization . The nation's inclination to join such international bodies increases its propensity to flourish with respect to its trade initiatives.
Conclusion
International trade yields numerous benefits for the nations involved. It provides a ready market for the commodities available from different sectors. Moreover, it facilitates specialization which enables respective nations to capitalize on their available resources. As a result of increased commerce, it becomes possible to improve country-related economics. In addition, international trade eradicates unemployment. Such income increments foster an improvement in the living conditions of a nation’s residents.
References
Europeanmovement.eu. (2015, June 4). The Positive Effects of International Trade on Emerging Countries. EMI . Retrieved on 8 October 2019, from https://europeanmovement.eu/news/the-positive-effects-of-international-trade-on-emerging-countries/
Intracen.org. (n.d.). Eastern Europe and Central Asia . Retrieved on 8 October 2019, from http://www.intracen.org/itc/regions/eastern-europe-and-central-asia/
Jha, P. (2019, February 20). The patterns of India’s foreign trade have changed dramatically in the past three decades. D+C - Development + Cooperation . Retrieved on 8 October 2019, from https://www.dandc.eu/en/article/patterns-indias-foreign-trade-have-changed-dramatically-past-three-decades
Tian, X., Hu, Y., Yin, H., Geng, Y., & Bleischwitz, R. (2019). Trade impacts of China’s Belt and Road Initiative: From resource and environmental perspectives. Resources, Conservation and Recycling, 150 , 104430.
Wto.org. (2019, April 2). WTO | 2019 Press Releases - Global trade growth loses momentum as trade tensions persist. Press/837. Retrieved on 8 October 2019, from https://www.wto.org/english/news_e/pres19_e/pr837_e.htm
Yao, D., & Whalley, J. (2016). The China (Shanghai) pilot free trade zone: Background, developments and preliminary assessment of initial impacts. The World Economy, 39 (1), 2-15.
