Topic > Political Economy in International Trade - 802

Political Economy in International Trade focuses on understanding the multiple causes of economic growth in developing and transition economies, the different role of international trade in increasing of economic well-being around the world and on the multiple impacts of the international financial system on the global economy. As we take a look at the different economic systems of the United States and Poland and understand how these two countries are influenced by the political economy in international trade, we will become familiar with how both are able to become adept at improving their economic conditions in the globalized context . world economy. One of the most important objectives for both economies is to increase economic development and also strengthen the international economies of both countries in the international trading system. By looking closely at the key aspects of international trade—increasing market size, insurance motivation, protectionism, and increasing bargaining power—we will begin to understand what makes and breaks countries' economic policy in international trade between large and small. nations. To begin with, the opening of Poland's trade policy in the early 1990s represented the most important step in the transformation of the Polish economy. Poland succeeded in making the zloty (meaning gold), Poland's official currency, convertible on the international currency market, which in turn freed national prices from administrative control. By participating in the political economy of international trade, Poland was able to increase the value of its imports by more than 7% per year. The change was made possible because Poland had unbound tariffs. Poland has created a (FT...... middle of paper......s cooperate on trade policy to help each other against decreasing market access in a large market. The insurance case for a country like the United States is useful because of the context in which small developing nations are increasing free trade with partners from larger developed nations. In summary, the economic policy of Poland and the United States in international trade is one vital resource for both economies without involvement in the international trade market of both countries would not be able to keep up with the demand for imports and exports in the global economy Political economy in international trade grows economies and affects what a country is able or unable to do in the international trading environment, having insurance, protectionist motivations and growing bargaining power will help both economies grow in the years to come.