Challenging corruption has recently become one of the main priorities in a number of countries around the globe. Mainly because the negative effects of corruption have been widely recognized in practice and by the academics. The adverse effects of corruption vary; in developed countries corruption is relatively curbed; however in the underdeveloped world corruption usually accounts for enormous amount of the Gross National Product. There are a number of different approaches to fighting corruption as well as there are different causes of it. This essay paper argues openness to international trade has a positive effect in decreasing political corruption. Deriving from neoliberal ideas, international trade widens the scope of free market which results in less substantive powers for the government officials. Corruption flourishes when there is lack of perfect competition in the bureaucracy; monopoly power among officials is combined with discretional powers and low accountability. Another argument discussed in this paper favours the idea of reducing corruption by lowering tariff rates for international trade. An empirical study is being presented which analyses the correlation between corruption and import shares.
Transparency International accounts corruption as the abuse of the ones entrusted with power for private gain. Corruption negatively affects everyone whose life, livelihood or general happiness depends on the integrity of people in a position of authority. Corrupt activities hold back economic development, prevent the conditions free market and equal opportunities for businesses and consumers as well as exploits already marginalised groups of people. In some cases, s...
... middle of paper ...
... American Economic Review. 89 (4), 1.
Bonaglia, F., de Macedo, J. and Bussolo, M. (2001). How Globalization Improves Governance. OECD Development Centre, Working Paper No. 181. 181 (1).
Gatti, R. (2004). Explaining Corruption: Are Open Countries Less Corrupt? Journal of International Development. 16 (1).
Gerring, J. and Thacker, S. C. (2005). Do Neoliberal Policies Deter Political Corruption?. International Organization. 59 (1), 1.
Larrain, F. and Tavaranes, J. (2000). Can Openness Deter Corruption?. CEPR Discussion Pape. DP6488 . 1 (1), 1.
Mandal, B. and Marjit, S. (2013). Trade reform, intermediation and corruption. Economic Modelling. 33 (1), 1.
Haur Tang, S. (2011). Corruption and International Trade: An Empirical Study on Large East Asian Newly Industrializing Countries and Comparative Politics of Corruption. The UCLA Undergraduate Journal of Economics. 1 (1).
Need Writing Help?
Get feedback on grammar, clarity, concision and logic instantly.Check your paper »
- Bribery and corruption is a way of life in many countries. These practices affect the way international business is regularly conducted. However, in most of these countries, it is illegal to offer or receive bribes or engage in corrupt practices. Yet corrupt practices are a part of the ‘culture’ of ‘doing businesses. Unless companies ‘conform’ to such practices, in many cases, international business cannot be transacted. This essay will attempt to provide discussion about bribery and corruption in international trade example in vary different point of view in according to the principal ethical system suchlike religious, philosophical and ‘natural’.... [tags: International Business]
1748 words (5 pages)
- International Trade Sans capitalistic greed, corruption, and convenience (as in the adage, “convenience breeds apathy”), the globalization of business and trade provides many benefits. Economist Arnold Kling, suggests that, “…International trade raises the standard of living” (2008, para. 26). This makes sense. Despite a great disparity in equal wages, trade increases the flow of capital and can reduce the cost of goods. Nation states shut out from international trade have higher poverty and lower education levels.... [tags: Globalization, International trade]
707 words (2 pages)
- What is trade. Trade is the process of exchanging of goods and services among parties for something they own. Money is used for the exchanging of goods and services which is easier than the previous barter system. International Trade and Trade Organizations Trade organizations are responsible for the rules of trade. One such organization is the World Trade Organization; this handles the global rules that govern trade. The WTO was birthed out of the General Agreement on Tariffs and Trade GATT, which was established in 1947 after World War II.... [tags: World Trade Organization, International trade]
1319 words (3.8 pages)
- Introduction In the last decade the American slogan ahs been “ buy American” and many patriotic Americans have adopted the slogan and displayed an aggressive movement in demonstrating healthy pride in American made goods. In the United States, the American people have accepted cheap quality imported goods and numb to ethical labor laws in foreign countries. International and Word Trade Law - Counterfeiting What will it take to buy American made goods and what impact will boycotting goods from other countries have on our country and other countries and the business dealings is the question.... [tags: United States, International trade]
811 words (2.3 pages)
- FTAs include the removal of tariffs and other trade restrictions on a comprehensive array of either goods, services, or both (David Lynch, 2010, p. 895). With a full understanding of the benefits in mind when discussing Free Trade Agreements, the four primary reasons why countries are eager to join are to increase market access, increase competitiveness in global markets, to achieve economic stability, and to promote investment. I feel that these four factors are most important because today’s market is extremely competitive and there must be personal benefit as well as benefits for the nation in the agreement.... [tags: International trade]
948 words (2.7 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.... [tags: development, global, free trade agreements]
802 words (2.3 pages)
- When I have the opportunity to be part of a group of negotiation and defend the position of my country during a meeting in the World Trade Organization, I was convinced that I wanted to play that role for the rest of my life. The first approach that I had in the area of international affairs started when I was studying my bachelor degree in Language, Business and International Studies at the Catholic University of Ecuador. I was part of the student council and we organized the first Model of United Nation.... [tags: International trade, Trade, Ecuador, Economics]
1356 words (3.9 pages)
- Future Directions India’s Free Trade Agreements India - South Korea South Korean Companies already have a major investments in India and have over 50 companies in India. The Free Trade Agreement will encourage Korea to Invest in India’s Infrastructure, which in turn leads to increased GDP. The amount of trade and investment between the two countries have grown substantially. The bilateral trade is steadily growing. It is predicted that India’s exports will increase to US$600 million. Potential for trade in services exists in sectors like IT, Construction, Animation, Finance and Transportation.... [tags: European Union, International trade]
734 words (2.1 pages)
- The first step in international marketing is deciding whether to go abroad. At this step, companies must weigh the pros (better profit opportunities than domestic markets, larger customer base to achieve economies of scale, can reduce dependence on any one market) and cons (company might not understand foreign preferences, business culture, or regulations) of international business and also their company’s situation (size, financial resources, HR, expertise, experience). If they decide expanding internationally is a viable option, they must then decide which market(s) to enter.... [tags: International trade, Investment, Marketing]
1120 words (3.2 pages)
- Over the last few years, the issue of corruption--the abuse of public office for private gain--has attracted renewed interest, both among academics and policymakers. There are a number of reasons why this topic has come under recent inspection. Corruption scandals have toppled governments in both major industrial countries and developing countries. In the transition countries, the shift from command economies to free market economies has created massive opportunities for the appropriation of rents, excessive profits, and has often been accompanied by a change from a well-organized system of corruption to a more chaotic and deleterious one.... [tags: Corruption in Government]
1150 words (3.3 pages)