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...
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...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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