Discuss the impact on international trade of emerging economies like those of Eastern Europe, India, and China. - What can we expect from them in the next 20–50 years?
Impact of International Trade on Emerging Economies Name Institution Date The advent of globalization has increased international trade, as emerging economies have removed some barriers to trade while working more closely within the international global trade framework. The emerging economies increasingly have better access to capital, and transnational corporations that have expanded into these markets. Additionally, there are comparative advantages of emerging economies that have low costs, and have attracted Foreign Direct Investments (FDI) (Hanson, 2012). The Western economies may no longer be the safe markets, even as investors pile up debt instruments and bonds of these countries. As emerging economies are involved in international trade, they are likely to experience longer growth rates since they are in the early phase of development. The involvement of emerging economies, especially India and China in international trade has resulted in economic expansion and reduction in poverty. China has become competitive in mass production of goods, that even Western companies have shifted their base in the South East region. The population in the emerging economies is young compared to Western economies, and the abundance of labor makes the countries well suited for production and manufacturing. There are oppor