The Political Economy in International trade focuses on understanding the many causes of economic growth in developing and transition economies, the different role of international trade in increasing economic welfare around the globe, and the many different impacts of the international financial system on the global economy. As we take a look at the United States and Poland different economic systems and understand how these two countries are effected by the political economy in international trade, we will become familiar with how both are able to become skilled at improving their economic conditions in the globalized world economy. One of the most important objectives for both economies is to increase economic development and also to enhance the international economies of both countries in international trade system. As we look closely at the fundamental aspects of the international trade key point (Increasing market size, having an insurance motive, protectionism, and increasing bargaining power) we will begin to understand what makes and breaks countries in the political economic in international trading between large and small nations.
To begin with, Poland trade policy opening up in the early 1990s was the most important step for Poland economy transformation. Poland was able to make zloty (which means golden) is the official currency of Poland to become convertible in the international currency market, which in-turn made all-domestic prices to become released from the administrative control. By participating in the international trade political economy, Poland was able to increase their import value to over seven percent yearly. The change was made possible because Poland had tariffs that was unbound. Poland created a (FTA) free trade area with (EA) Europe Agreement which involved non-agricultural products for ten years. Poland has taken major steps to restore its fiscal discipline despite what many see as a challenging economic environment.
Poland has Continue to reform, particularly to strengthen the independence of the judiciary and to eliminate government and corporate corruption, is needed to increase the foundations of economic freedom and to ensure progress toward greater economic prosperity. By having access to international markets, and healthy economic policies, Poland was able to dodge the 2008 international economic crisis. Agriculture is held back by inefficiency, structural problems, and low investment. The automotive, aviation, pharmaceutical, and machinery sectors have made Poland one of the European Union’s strongest economic performers. The private sector of Poland accounts for two-thirds of GDP. As of 2014, Poland has an economic freedom score of 67.0, making Poland economy rank in at the 50th freest.
Secondly, the United States...