The Some New Aspects of the International Business Theory and International Economy

What is it about?

The influence of the international business theory on the international economy is the subject of the analysis in the undertaken research program. It was emphasized that the trade liberalization has a special positive significance in the global economy. Due to technical progress and to the growth of economic ties between particular countries, participants in the world economy, the benefits resulting from liberalized international trade and from the freedom of movement of foreign direct investments become bigger not only for the industrialiszd countries but also for the so-called “emerging markets” that is, the countries that find themselves on the stage of the accelerated development. General Agreement on Tariffs and Trade (GATT) had played a special role in the process of liberalization of the contemporary international trade. Nowadays that role has been taken over by the World Trade Organisation (WTO). The decisions taken by the representatives of the governments participating in the World Trade Organisation (WTO) are, to a significant degree, influenced by various lobbies, such as organisations and unions of food producers or other non-governmental organisations (NGO), including trade unions. The biggest confrontations within WTO involved agricultural problems. They could also be observed in other areas, such as steel industry, textile industry or in an environmental protection.

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Photo by John McArthur on Unsplash

Photo by John McArthur on Unsplash

Why is it important?

. The most serious conflict was noted between the European Union and the United States of America. The differences in the positions of the representatives of the two sides could be easily seen during the next rounds of trade negotiations. In recent years the governments of the two important economic powers found themselves under a considerable pressure from agricultural producers who had serious problems with selling their surplus production in the situation of agricultural products surpluses in the shrinking world market and falling prices. The protection of agriculture in the European Union, which can be seen in the Common Agriculture Policy (CAP) of its member states, was becoming a serious obstacle in reaching the compromise.

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