The Political Economy in International Trade

802 Words4 Pages
The Political Economy in International trade focuses on understanding the many causes of economic growth in developing and transition economies, the different role of international trade in increasing economic welfare around the globe, and the many different impacts of the international financial system on the global economy. As we take a look at the United States and Poland different economic systems and understand how these two countries are effected by the political economy in international trade, we will become familiar with how both are able to become skilled at improving their economic conditions in the globalized world economy. One of the most important objectives for both economies is to increase economic development and also to enhance the international economies of both countries in international trade system. As we look closely at the fundamental aspects of the international trade key point (Increasing market size, having an insurance motive, protectionism, and increasing bargaining power) we will begin to understand what makes and breaks countries in the political economic in international trading between large and small nations. To begin with, Poland trade policy opening up in the early 1990s was the most important step for Poland economy transformation. Poland was able to make zloty (which means golden) is the official currency of Poland to become convertible in the international currency market, which in-turn made all-domestic prices to become released from the administrative control. By participating in the international trade political economy, Poland was able to increase their import value to over seven percent yearly. The change was made possible because Poland had tariffs that was unbound. Poland created a (FT... ... middle of paper ... ...s cooperate on trade policy to help each other against the decrease of market access in a large market. The insurance motive for a country like the U.S is helpful because of the backdrop that small develop nations are increasing free-trade with bigger developed nations partners. In summary, Poland and the United States political economy in international trade is a vital resource for both economies. Without involvement in the international trade market both countries would not be able to keep up with the demand for imports and exports in the global economy. The political economy in international trade make economies grow and it impacts what a country is able or not able to do in the international trade environment. Increasing market size, having an insurance motive, protectionism, and increasing bargaining power will help both economies to grow for years to come.
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