Since Times In Memorial, No Territory In The Ancient World Was Able To Survive On Its Own. Eco310 Report

3338 words - 14 pages

        Since times in memorial, no territory in the Ancient World was able to survive on its own. No territory was self-sufficient when it came to goods and services. This aspect has been carried forth by modern day economies. Economies depend on each other for products and services which they do not produce. A good example for elaboration is petroleum, few countries in the World extract the commodity. In each and every country of the World petroleum and petroleum products are used. This shows how nonproducers depend on oil producers for survival. On the other hand, oil producing countries can't make use of all the oil they produce. The surplus has to be disposed of in a good way. By disposing of it, they sell the oil to friendly nations which are able and willing to buy. For instance, the largest importer of the Worlds petroleum is the US.
      By the use of the above example, countries depend on each other for trade purposes. Country X exports its product and services to country Y since country Y does not produce the commodity/service or there is a shortage in country Y The vice versa is true where country Y exports to country X. Other means through which countries depend on each other are investments. Since in country Y, the economic conditions are suitable, firms from country X open up branches in country Y.  Country Y is also not restricted from opening up firms in country X.
        Trade and economic activities between two countries depend on some factors. In the paper, we are interested in what makes country X attractive regarding business and trade and what makes it unattractive. Our guiding elements will be things such as the level of imports and exports, the foreign exchange rates, and currency. We are going to look at the infrastructure, tax regimes in place, trade barriers, and tariffs, etc. After a thorough analysis of the above recommendations and conclusions will be made
Case Study of France
     France is among members of the European Union (EU). Being a member of the EU this makes it very attractive regarding trade, investments, and business opportunities. It is attractive to both EU members and nonmembers. One of the nonmember countries which are very interested in trade and investments in France is the US. The numbers of firms from the US being set up in France are on an increasing trend. Over 1,000 firms from the US have pitched a tent in France. They account for about 700,000 of the workforce in France. Examples of firms which are already operating in France include IBM, Ford Motors and Coco Cola, etc.
      This is just a fraction of the firms in France which have their roots in the US. Some firms from the US have been in operation in France since the 19th century. They include JP Morgan who started its operations in France in the year 1862. American Express started its operations in France in 1895. This shows a long-lasting attractiveness of the France market to US firms. T...


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