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Essay / International Trade Essay - 1309
International trade is an activity that deals with the exchange of services and goods between countries. This is why we have the concept of a global economy in which prices, or supply and demand, are affected by global activities (What is International Trade? 2012). International trade allows a country to benefit from the services and products of other countries, especially those that are not readily available to that particular country. This is also the reason why we have so many products to choose from in the domestic market that carry other countries' name labels. Most of the products like food, clothing, spare parts, oil, jewelry, stocks and many more are the result of international trade. On the services side, they are also commercialized, such as in tourism, banking, consulting and transport. International trade involves two activities: exporting and importing. Export is a product sold in the global market and import is the product purchased in the local market. Kuwait became a contracting party with the rest of the world when it signed the General Agreement on Tariffs and Trade (GATT). in 1994. This signal for the country to participate in import and export and this agreement was strengthened when the country became a member of the World Trade Organization (WTO) in April 1996. When Kuwait became As part of these two giant trade organizations, it began to engage in international trade and fulfill its obligations under multilateral trade policy. Today, Kuwait positions itself as an open economy, meaning it welcomes international trade and competition as part of its economic development. This report will detail international business activities in Kuwait...... middle of article ......s currently occurring with Kuwait's economic growth due to the strong contribution of the country's international business activities, McGehee (2013) stated that a bright economic outlook lies ahead for Kuwait for the year 2014. Kuwait's economic growth prospects by 2014 will be either the highest in the GCC, which is in line with the resilient growth forecast in the region. The IMF estimates that Kuwait's GDP will increase by 4.5 percent by 2014. The author is of the opinion that this high increase in GDP may be the result of the country's near-record oil production . The sharp rise in oil prices comes at the right time for the country to recover from non-oil sector losses resulting from the 2009 economic recession. Additionally, the recovery has been boosted by significant private and public investment in oil projects. infrastructure and by the increase in FDI in the country..