Question

What are the challenges of the international trading system?

Answer 1

Challenges facing by international trading system.are that Governments along the world are torn between to different ideaologies like dveloping technology, new investment, long term economic growth and their idea giving subsidies , tax maximisation, redistribution of wealth etc.

Due to this there are conflicts between countries which is affecting their trade negotiations.

Lets us take counties A, B,C . If A and B are trading each other and A want to trade with C also but B is having conflicts with C. So thus it is leading to imbalances between them. If A trades with C than B will either impost high tax rates for exports or imports that are main sources for A. Which is affecting both of them in either way or around.

Change in government also affects the trade One government spends more and one government spends less this also affects trade.