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International trade is largely based on the constant fluctuations in the world economy, which translates into constant changes with respect to tariffs, trade subsidies and endless changes in regulations regarding international trade. “Trade Policy and Economic Growth”, a paper by Keith Maskus, PhD, focuses on the relationship between trade policies and the growth of the economy or the lack of it, the main point of interest of the paper was to establish if the variation of Trade policies will affect the economic growth of any country. The conclusion reached was that open economies tend to grow faster than closed economies, ceteris paribus. therefore concluding that open competition is good in the sense that it improves the distribution of resources and the country wins in Investment and innovation.

An organization engaged in international trade has to pay special attention to such information. There may not be countries with closed economies, however there are countries that have low imports to the point that they are considered closed economies, for example Brazil. In 2011, Brazil registered 13% as an import percentage, which was quite low for a country of its size. Isn’t it then imperative to be constantly up-to-date with changes in the trade policies of the countries with which one is interested in doing business? Since there is a proven positive relationship between the opening of an economy to competition (meaning that the country is heavily involved in trade) and the growth of that country’s economy, this serves as an indication of how lucrative and profitable would be a business. be in such circumstances. Then the critical analysis aspect comes into play when determining how much gain or loss would result from substantial changes in policies, which are measures and instruments that can influence exports and imports, with the objective that policies influence the commercial sector to get benefits. for business venture. one might feel that a business management degree is needed to fully understand all aspects and aspects of international business, and they would be right, but the eventuality is that it will always come down to intelligence and efficiency in analyzing trends, calculating Potential gains/losses, predictions of future stability, or fluctuations in the world economy that cause price changes in the trading sector.

There is another important factor that can alter potential business plans, and that is the politics of the country in question, the policies are easily influenced by the politics of the nation and therefore it is advisable that a critical analysis is also undertaken, which which results in a better understanding of the country and its stability, thus reducing the chances of incurring a bad business eventuality. Unfortunately, nations are not ruled by robots, but rather by people with human nature interests and desires that differ from individual to individual, making it difficult to maintain a consistent effective system. if politicians are elected they tend to focus on altering policies to their own benefit and the benefit of those they promised (if honest politicians are still available) from then on it is important for international companies to consider such factors before start business. The main examples are, whenever there are strikes in South Africa, investors tend to shy away, and most of the strikes stem from political influence, so South Africa is seen as an unstable nation to invest in, or Zimbabwe is seen as a sanctioned nation due to to political violations. making the country undesirable for investment regardless of the profitability of the business idea. Therefore, it is an excellent idea to first research the country’s politics in depth beforehand and invest with much-needed information, which guides the innovative decision that is made.