The Development Of Free International Trade - 1385 Words

International trade implies the openness of the economy. It is the antithesis of self-sufficiency economy, where a country can own efforts to cover all the needs of its citizens. Currently, the development of an open economy can be seen in many countries. The advantages of this trend are simple: international trade in general defines the standards of the world market and couples with the reduction in the cost of goods. This happens due to the increased specialization in the distribution of production, which allows to allocate resources in the most rational way and encourages competition between domestic and foreign producers, which improves the quality of products. Open trade improves the investment climate and stimulates the inflow of†¦show more content†¦Among the indicators of participation in international trade: increasing the share of imports in GDP - this ratio is defined as the import quota. The ratio of exports to gross domestic product is defined as the export quot a. Thus, the value of import and export quotas shows the country s involvement in world trade. An example with of with a high export quota is Belgium. Export quota is 80%, according to the portal of foreign trade activities. The export quota means that Belgium allocated a certain quota that limits the amount of export supplies of certain goods. It is necessary as a mean to stabilize the prices of these commodities, as Belgium is dependent on their exports. Trade turnover in Belgium in 2013 was 694.4 billion euros. And it was 688.3 billion euros in the same period of 2012. According to the National Bank of Belgium, the basis of Belgian exports in 2013 were chemical and related industries, which accounted for 23.2% of total exports† . Moreover, in Belgium, the export structure is also prevailed by commodities such as mineral products (13.4%), machinery and equipment (10.3%), and vehicles (9.8%) . The bulk of foreign trade operations of Belgium performs with the EU countries, whose shares in exports is 69.8%. The majority of Belgian exports (16.8%) are sold to Germany (59.5 billion. Euros)† . Thus, we see that the volume of Belgium export increases. Belgium in the structure of world