UNIVERSITY OF CHILE School of Law International Law Department of International Recruitment Course Instructor: Eduardo Picand Albonico regulation of international trade 1 1. International trade International trade has existed since ancient civilizations. a Governor of REBNY – The Real Estate Board of New York is served as a Director of Emigrant Savings Bank from 1992 to 2003 If however, half of the twentieth century suffers a considerable change with increasing amount of business with the consequent development of the complexity of the business. This has led to the consolidation of new players in the market States, multinational corporations, among others. These changes have led to the creation of a number of institutions that target the regulation of trade development. One of the main functions that the modern international trade will have the chance to profit from the production of certain goods in each nation. One of the first phase of international trade took place under the foundation of mercantilism, as imposing high tariffs, high trade barriers. Mercantilism is a set of ideas and economic policies that were developed in Europe during the sixteenth, seventeenth and first half of the eighteenth century. His theory is to strengthen the state as economic hub of all movement. This must be done through protectionist measures to encourage exports and discourage imports by setting high tariffs. The prosperity of the nation depends on the richness of this, which is measured in relation to the reserve of precious metals. However, confidence in mercantilism began to wane in the late eighteenth century, when the liberal theories were gaining ground. Some of the flaws: The protectionism led to the creation of production companies supplying excessive and inefficient products to consumers outdated and unattractive. A second stream doctrinaire libertarianism, political thought that emphasizes the rights of individual subjects against tradition or the community. It takes place during the Enlightenment and is made primarily by Adam Smith's basic premise that the economy should operate with minimal government interference. Smith completes this theory explains that the market is moved by an invisible hand which allows the spontaneous order and harmonious. Then the market economy is sustained by its own laws, subject to the market 2 and the regulation of supply and demand, achieved through the "invisible hand" 3 . 1. Concept of international trade, strictly speaking, is defined international trade as the exchange of goods and services between countries. Broadly speaking, international trade is where there is direct or indirect exchange of goods, services, money, and others. 2. Advantages of international trade International trade allows greater mobility of factors of production between countries, leaving due the following advantages: a) Each country specializes in those products which have higher efficiency, allowing better use of their productive resources and raise the living standards of their workers. b) The prices tend to be more stable. c) It enables a country imports those goods whose domestic production is insufficient or nonexistent. d) It enables the supply of products that exceed local consumption to other countries, positions in other markets (exports). e) Balance between scarcity and excess. f) Through the balance of payment can analyze what types of international transactions have been carried out residents of a nation in a given period. The advantages mentioned, can also be explained by economies of scale.
