Manage finance

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Manage Finance

Bilateral or Regional Trade Agreements

Bilateral agreements also referred to as regional trade agreements (RTAs) indicate to agreements that different countries enter into for trade benefits. It involves two or more countries and is characterized by reduced tariffs, the introduction of quotas and other trade restrictions that aim at promoting trade in the region. The prevalence of these agreements since the 1990s has seen over 635 notifications for RTAs received by the WTO as of July 1, 2016. Among these, 423 of these notifications already in force have contributed to positive trade implications in the countries involved (World Trade Organization, par 1). These figures indicate for both goods and services besides the accessions provided separately. These trade agreements of reciprocal nature benefit the partners involved differently with the main advantage as trade relations between them.

International Commercial Terms (Incoterms)

Incoterms refer to a collection of commercial terms pre-defined and published under the International Chamber of Commerce (ICC) to guide commercial transactions of international nature. These also contribute to the guiding of global procurement processes between different partners. These rules initially developed and enacted in 1939 have undergone several amendments that have ensured they work in line with the changing and expanding global markets and trade activities (Chikwava). The increasing risks associated with security of business transactions and those involved has contributed to the amendments to the guidelines. These have therefore improved business operations worldwide and reduced risks for those involved.

Trade Practices Act

In Australia, the Trade Practices Act has been in force since 1974. For over 25 years, the Act has controlled business practices with increased protection of consumers and prohibitions on antitrust approaches to trade. The antitrust aspects have protected traders and ensured agents that perpetuate these practices are sieved from the business operations. It has also protected consumers by ensuring all dealers provide quality products on the market that do not compromise the health of the consumers. The Act has provided comparisons and contrasts between it and similar acts in other countries influencing the development of good relations between Australia and its neighbors (Hanks & Williams, p.1).

Warsaw Convention

The Warsaw Convention refers to a convention that resulted in the unification of rules of international air carriage of cargo and passengers. The convention controls liability arising from the international transport of persons, goods or luggage for a reward. In a case between Fischer v Northwest Airlines Inc (1985) in which a passenger suffered a heart attack while on a flight, the Warsaw Convention was exercised with the court ruling that the flight was not involved in an accident and the predisposition of the passenger was considered (Hubbard & Bor, p.299). A case of this nature reveals the advantages of the convention to the aviation industry.

World Trade Organization Determination

The World Trade Organization (WTO) has tremendously influenced the control of trade worldwide with resulting positive impacts boosting international relations. The organization has formulated tariffs employed equally to all partners involved in international trade. The determinations of the WTO have led to the development of the anti-dumping rules, subsidies, contingencies and safeguards for consumers and traders on the international platform. It has ensured action against those involved in restricted acts like dumping with implications gross as trade embargoes imposed by those business partners involved. It has provided the control of counterfeits and other unfair trade practices, which have an adverse impact on international trade.

Work Cited

Chikwava, Brian. Sustaining Contractual Business: An Exploration of the New Revised International Commercial Terms. Xlibris Corporation, 2012.

Hanks, Frances & Williams, Philip. Trade Practices Act: A Twenty-Five Year Stocktake. The Federation Press, 2001.

Hubbard, Todd & Bor, Robert. Aviation Mental Health: Psychological Implications for Air Transportation. Ashgate Publishing, 2012.

World Trade Organization. “Regional Trade Agreements.” World Trade Organization.