The Impacts of International Agreements on Domestic Policy Research Paper

The Impacts of International Agreements on Domestic Policy - Research Paper Example These include presence of domestic distortions that may counter the process of investment and adjustment in new activities. Moreover, it is purported that trade gains and performance enjoyed by a nation relies on activities and performance of their trading partners. It is evident that foreign market accessibility reduces has both positive and negative effects on the trading activities of a given country. They can either raise or lower imports’ prices. Similarly, they have detrimental effects on the growth potential, investment incentives, and terms of trade of developing nations (Trela et al 271). Multilateral and bilateral international agreements have been identified to facilitate in addressing externalities or negative pecuniary spillovers chanced by trading partners’ policies. In addition, they help in adoption of feasible national policies and be implemented as instruments to solve non-pecuniary externalities. Rather than just focusing on national policies that imp acts pecuniary spillovers as the primary objective, attention has been raised due to the prevalence expansion of the domestic policies also known as the â€Å"behind the border† policies. ... Controversies emerge in cases where trade agreements are extended behind the border policies. This is in regards to government difficulties in drawing boundaries of the world trade organizations. Moreover, the government is faced with difficulties in determining the type of international organizations that can be better pursued through international trade organizations. Since, there exists no specific solution; specific analysis is inherent of the status quo domestic policies implications. Further, magnitude and existence of any negative spillovers and the benefits and costs impact of alternative forms of international associations is essential regarding to binding and voluntary dimensions. International agreements fostering trade liberalization have little impacts on economic growth stimulation in countries with distorted capital, markets, and product. Studies show that increased openness to commerce positively correlates to income in all nations or regions. Nevertheless, it is asso ciated with lower living standards in countries that impose high costs on restructuring or heavily controls new entry. Domestic policies in this sense restrict navigation of resources to sectors or firms exhibiting productive developments. Trade openness productivity effects are positively defined by entry and exit of firms rather turnover rates. Therefore, international trades associations facilitate rather allow reallocation of production factors, particularly policies that promote domestic competition exemplified by entry and exit of resources and flexibility in the labour market (Bako 78). Governments are faced with challenges on how to embrace international agreements in solving domestic distortions and enhancing trade-related institutions. International

Analyze and asses the economic effects of regulation on passenger vs Essay

Analyze and asses the economic effects of regulation on passenger vs. freight transportation - Essay Example This is when aspects of comparison are enforced in the market and the targeted performance by the airline companies. This paper analyzes and assesses the economic effects of regulation on passenger versus freight transportation. In the field of economics, once supply is reduced the tendency for price increase to be introduced is always very high. Regulations that inhibit airlines from taking a certain route within a timeline result in choked supply of the goods that are required. This means that there are people that want to travel and transport their goods from one area to the next. They are not able to do so because government regulations restrict them. The people and the goods have to be transported within set timelines. This results in so many people wanting to travel. In other cases, the flow of goods is hampered especially if the goods are perishable in nature. At this point, it is the mandate of the airline company to increase the air fares thus reducing the demand for the service. This means that if governments allowed airline companies to travel to regions as many times as they would want to, the demand would be evenly spread. This will also translate to cheaper airfares for anyone using the servic e (Abramowitz & Brown, 1993). In many instances, regulation has been viewed as a form of any government’s effort to reduce the number of people and goods using air transport. This is because many of them do not have the structural capacity to deal with the ever emerging need for transportation. Economically, this results in over congestion of other forms of transport and reduced revenue generation from the air companies. The aspect of coordination and relationships is greatly affected by the fact that regulations have been perceived as a form of dictatorial governance. This is a headache for very many governments and their transport systems. It is necessary to note that regulations affect economic relations between nations by stipulating the terms