As a result, companies in certain sectors, such as electronics and chemicals, have become multinationals and have begun to buy and produce parts and materials in a number of countries. Every time these parts and materials cross a border, an international commercial operation has taken place; and then, when the last property is exported, there is another international trade transaction. In addition, as part of trade diversion, the importing country loses the customs revenue it has collected for imports that now come from its duty-free bloc partner. The consumer in the importing partner wins because the imported goods are no longer dependent on customs fees; However, the benefit of the consumer is necessarily less or equal to the shortfall in tariffs, so that the nation as a whole is doing less well. Thus, the diversion of trade harms both the importing country and the rest of the world. These losses are greater than the benefits to the bloc member who obtains exports due to traffic diversions. Ukraine`s Free Trade Agreement (Ukraine`s Ministry of Foreign Affairs): mfa.gov.ua/en/about-ukraine/economic-cooperation/trade-agreements Second, the necessary economic data are often weak, not only for developing countries, but also for the United States and other developed countries. For example, trade and economic data between countries and even within countries are not easily compatible. In the United States, the U.S. Industry Classification System (NAICS), which is used to collect statistical data to describe the U.S. economy, is based on sectors with similar processes for manufacturing goods or services.
On the other hand, data on international trade in goods are collected on the basis of goods. [16] NAFTA partners in the United States, Canada and Mexico also use NAICS, but the European Union uses a system called the nomenclature of economic activities. Although there are convergences between these different systems, they are far from accurate. One of the best-known defenders of this philosophy, known as mercantilism, was Thomas Mun, a director of the British East India Company. In a letter written to his son in the 1630s, he said: “The ordinary way to increase our wealth and treasure is foreign trade, and we must never respect that rule. more to sell to foreigners each year, that wee consume their value. . .
. This order has been properly maintained in our trade, . . . . . that a portion of our stock that is not returned to us in goods must necessarily be developed us. [1] Indian Trade Portal – Free Trade Agreement: www.indiantradeportal.in/vs.jsp?lang=0&id=0,55,288 Theresa May said that trade agreements with the rest of the world were more important than the Brexit deal with the EU: www.express.co.uk/news/politics/694411/Brexit-Theresa-May-trade-deals-rest-of-world-more-important-EU-agreement-Article-50 a) one of the parties to a dispute over the application or interpretation of Articles 53 or 64 may submit it to the International Court of Justice by written request, unless the parties agree to submit the dispute to arbitration; The second factor that can affect a country`s current account balance is the exchange rate.