Question

What are the main reasons for the rapid development of World Trade since the Second World War? In addition to the factors listed in this chapter, what do you add?

Answer 1

World trade has increased significantly after second world war. Second world war devastated world economies deeply. it was learning lesson for whole world. After world war 2, economic well beings were stressed upon and it was agreed upon, that welfare can be increased through trade and commerce. Competition would reduces prices and increase quantity produced. Following factors gave rise to world trade:

• Tariffs and other barriers were reduced by the countries.
• Creation of international level institutions such as IMF, GATT, WB facilitated free flow of commodities across the world.
• WTO was created in 1995, it worked massively towards the integration of world economies. It is helping to reduce the various trade barriers.
• Protection of intellectual property rights also pushing through the international trade.
• Advent of IT revolution has facilitated the trade among the countries.
• Last but not ;least, political stability across the world, also has created right atmosphere for international trade.