Explain how adequate infrastructure can assist in trading on the global market in middle-income countries.

International trade makes markets more competitive.

Why is an understanding of overseas competition important for financial viability in global markets?

Required informationSkip to questionMeasuring Global Trade The activity is important because as a manager, you must be able to understand global trade, and its effect on the local economy. Global trade enables a nation to produce what it is most capable of producing and buy what it needs from others in a mutually beneficial exchange relationship. This happens through the process called free trade. Through free trade, nations are able to import the goods and services they need and export the goods and services other nations need. In measuring global trade, nations rely on two key indicators: balance of trade and balance of payments. The balance of trade is the total value of a nation’s exports compared to its imports measured over a particular period. A favorable balance of trade, or trade surplus, occurs when the value of a country’s exports exceeds that of its imports. An unfavorable balance of trade, or trade deficit, occurs when the value of a country’s exports is less than its imports. The goal of this exercise is to demonstrate your understanding of global trade by answering questions about trade deficit and surplus. Read the case below and answer the questions that follow. For many years, the United States exported more goods and services than it imported. However, since 1975 it has bought more goods from other nations than it has sold and thus has a trade deficit. Recently, it ran its highest trade deficits with China. The chart below indicates the amount of goods and services the United States imports and exports from ten different countries.                              U.S. Trade Balance, by Partner Country, 2018                                          in descending order of importsPartner CountryImports for ConsumptionDomestic Exports—million dollars—  Canada$318,824      $299,768        China$539,675      $120,148        Mexico$346,100      $264,442        Japan$142,425      $75,229        Germany$125,848      $57,753        South Korea$74,264      $56,506        United Kingdom$60,783      $66,312        France$52,431      $36,616        India$54,349      $33,502        Singapore$26,612      $32,747      www.census.gov/foreign-trade/balance/c1220.html Consider the situation in which trade between the United States and China became balanced. Which of the following statements is true based only on the countries included in the chart?Multiple ChoiceNone of the statements are true.All of the statements are true.In general, the United states would experience balance of trade.The United States would have a trade surplus.The United States would have a trade deficit.

How important can be trade to the success of the socities ? Why countries some times want to restrict trade? Explain both parts of the question. 10 marks

4. When a country both exports and imports a type of commodity, the country is engaged inA) inter-industry trade.B) an attempt to monopolize the relevant industry.C) increasing returns to scale.D) intra-industry trade.E) imperfect competition