Analyzing Causes of International Trade Shocks
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Autores: Aysar Y. Fahad
, Taib Othman Abdurrazaq
- Localización: International Journal of Professional Business Review: Int. J. Prof.Bus. Rev., ISSN 2525-3654, ISSN-e 2525-3654, Vol. 7, Nº. 6, 2022
- Idioma: inglés
- Enlaces
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Resumen
Purpose: This research aims to analyze the impact of trade shocks on overall international trade relations.
The theoretical framework: of this paper comes from the fact that in recent years, the global economy has witnessed many trade shocks, whether caused by trade disputes between major economies, military disputes, or just crises in the supply of crude oi.
Methodology: The research relied on the analytical descriptive method.
Findings: The research concluded with a set of conclusions, the most prominent of which was that trade shocks do not necessarily result from the requirements of the traditional economic cycle or emergency or exceptional international economic conditions only, but they often occur as a result of economic and trade policies adopted by different countries. The severity of the shock and its time duration depend on the nature of the exported goods. or imported, and the trade shocks, with their positive and negative effects, exceed the state's trade balance to be reflected on all other economic variables such as gross domestic product, income, employment, commodity prices, interest rate, exchange rate, and cash reserves.
Research practical and social implications: The practical and social effects desired from this research are to study the different forms of trade shocks and their economic dimensions over different timescales in a way that makes governments more able to anticipate them and neutralize their negative effects and avoid them, with many of them adopting a policy of trade openness.
Originality/value: The research has great value in light of the risks posed by fluctuations in macro indicators with various trade crises in terms of temporary and permanent shocks or favorable and adverse shocks that are less studied in other previous studies.
