Sample Thesis Paper
International trade is a key component in the global economy today. It is further burgeoning through the rise of organizations like the WTO and agreements such as NAFTA which open up free trade, allowing goods to move freely and thereby aiding consumers in various countries in terms of prices and quality. It also spawns healthy competition in the local industries. However, when things in the economy begin to go awry, the first thing that many policy makers pursue is to enact trade restrictions. This can lead to a breakdown in competition and can lead to adverse effects in the local and international market.
In theory every country has a comparative advantage in the production of some products. This means that the labor and capital resources available in the reason are more productive when focused towards a particular industry and thus are able to be produce that product better as a result (Robert 1999). In the case of the textile industry, Pakistan enjoys a comparative advantage as it has many cotton fields, providing it direct access to the raw material for the industry.