The Philosophy of International and Free Trade - 1123 Words

A trade liberalization process on a global scale has started since the post WWII period, with most countries pursuing the philosophy of international and national free trade. Even though the complete free trade has not been made possible yet, and maybe it will never be, numerous agreements have been made in the name of trade liberalization. They allowed the trade between different countries and within the same country to a certain degree of liberalization where several new business practices can be implemented. The two highest expressions of this trade liberalization are off shoring and outsourcing. Moreover these two practices are more and more often applied together. However, it is crucial to clearly distinct the differences between off shoring and outsourcing. It is common mistake to consider them as synonyms. Off shoring can occur without out sourcing necessarily taking place, on the other hand the existence of out sourcing does not mean off shoring is happing as well. Definitions: Off shoring refers to the relocation by a company of a business process, either operational or supporting ones, from one country to a different one. However recently it is commonly used in relation to the practice of relocation to developing countries, with lower wages. It can consist of administrative or technical processes, such as accounting and manufacturing. On the other hand some business services, such as legal services, tend to be out sourced instead of off shore. Out sourcingShow MoreRelatedEssay about The Central American Free Trade Agreement1178 Words   |  5 PagesThe Central American Free Trade Agreement CAFTA is a proposed international free trade agreement between the United States and numerous countries within Central America. Some of the nations who could potentially participate in this treaty are Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragua. 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