Public International law Assignment Example | Topics and Well Written Essays - 500 words

Public International law - Assignment Example Thus, it becomes cheap to import from other nations via international trade. Additionally, international trade facilitates maximum utilization of resources and proper disposal of surplus produce. Countries are pressured to fully exploit their resource for maximum economic benefit since the market is available. In addition, market for surplus produce is available to other countries. This reduces wastage and under utilization of resources. International trade also fosters peace and unity among nations. The economic interdependency among the trading nations creates friendship thus reducing international skirmishes. Free trade encourages innovation and competition ( DeCarlo 23). This is because free trade avails a variety of goods and services to the customers. This spurs competition between companies and various producers enhancing innovation among the producers and companies in their effort to develop better products for the competitive market. Free trade discourages growth of infant industries. To be precise, newly initiated companies find it difficult to survive in the international competition created by free trade. In fact, free trade eliminates the chances of protecting developing industries in a competitive market structure. Additionally, free trade reduces government earnings in that export duty is not levied. Consequently, free trade may result to dumping thereby reducing profits. Free trade is a set up than eliminates most tariff barriers and tax on the movement of goods and services between members while Custom union is an agreement among a group of countries to charge a common set of tariffs to the outer world and grant free trade among the members of the union. Most Favored Nation Principle is a status given by one nation to another to offer the most favorable terms and regulatory treatment to the goods or services during import or exports of similar products to all other nations. There can