Today’s world operates on international trade. The economy can benefit in many ways by carrying out trade with our countries. Every country has its specific trade policy which it follows. If the textile industry of a country would export its products to other countries, it will be affected by the international market and the price of textile will be driven to match the price prevailing around the world. Although there are winners and losers in trade. If the international price of a commodity rises, and if it is being exported to other countries, the price of the commodity will rise on a domestic level also. If the price falls internationally, the price would fall on a domestic level as well. Whether the producers gain or the consumers, the gains are greater than the losses in free trade.
Trade with other countries cannot be started abruptly. To start trade with another country, trade agreements are signed and countries bargain with each other to reduce trade restrictions. When the counterparts of two countries, usually the ambassadors and finance/trade ministers conduct meetings, they need to negotiate in a diplomatic manner and communication must be very clear. Interpreters are required for a smooth communication and there are trade agreements which are signed in both languages. The copies of trade agreements need to be translated in the languages of the two countries having bilateral trade relations. Translation services companies may be approached to hire experienced and competent translators.
Often countries achieve free trade by removing the trade restrictions on their own adopting a unilateral approach, as we have the examples of Chile and South Korea. Sometimes countries adopt a multilateral approach and reduce trade restrictions. We have the example of North America who followed the same multilateral approach by drafting a North American Free Trade Agreement (NAFTA) and as a result three countries benefited namely United States, Mexico and Canada. Another organization was founded by US to reduce tariffs on trade. The continuing series of negotiations about tariffs in trade was named General Agreement on Tariffs and Trade (GATT), an initiative taken by the United Stated to reduce heavy tariffs on trade commodities after World War II. The negotiators included many countries at that time and the desired results were achieved by bringing the tariffs to a very low percentage. Such negotiations between different countries are beneficial for everyone but are only successful if clear communication takes place between the concerned parties. The need of translators and interpreters cannot be overlooked in such intercultural meetings. The World Trade Organization (WTO) formed in 1995 is also another forum to negotiate for countries which carry out trade with each other. So far 153 countries have joined the organization responsible for 97% of the trade being carried out in the world. This is indeed a positive step to review and negotiate about trade agreements and solve disputes. Such organizations are also operating with the help of translation service companies because a lot of intercultural communication takes place on such forums.
One may ask why trade is beneficial among different countries. Consumers have become very picky about buying products. They also need a greater variety of the same product from which they can choose. And goods produced in different countries will never be exactly the same, differing in their qualities and prices. This provides the consumers with an increased variety which they appreciate very much. There is also a principal termed as economies of scale in economics. The principal implies that some goods can be produced at a low cost only if manufactured in a large quantity and if the same goods are not being exported, the producers cannot manufacture them more than the demand. Trade gives them an opportunity to sell in bigger markets. Trade makes it difficult for a company to establish its monopoly, creating healthy competition between foreign competitors. Trade is responsible for the transfer of technology to those developing countries who are far behind in technology than the developed ones. But we must not forget the role of translators here as they play an important role in negotiations carried out between foreign representatives.
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