Trade Diversion and Trade Creation Essay Example | Topics and Well Written Essays - 1750 words

Trade Diversion and Trade Creation - Essay Example The concept of trade creation and the trade diversion is based on the cost of production and the value of the outcomes among countries or regions. Trade creation arises because of trade deals that occur between different countries that are involved in a spending shift by the domestic consumers. The agreement aims at moving local consumer expenditure from higher cost source domestic spending to a lower cost source partner spending (El-Agraa and El-Agraa, 2007). To clarify the concept of trade diversion, take an example of two countries within the EU that have signed a trading agreement. Taking in country A and country B. Country A households can switch their spending on insurance and cars supplied by its domestic suppliers at a higher cost to those provided by country B suppliers at a lower cost operating in the same market. The primary essence of trade creation is to encourage an upsurge in trade among countries that enter an agreement by signing the trade accord (Laine, 2011). The trade creation also leads to an efficient allocation of limited resources and raises gain in user and manufacturer welfare. Below is a diagram showing both the domestic supply and the internal demand for trade creation in the European Countries. The diagram demonstrates that access to cheaper supplies allows a lower price, which benefits the final consumer. The diagram also shows that a reduction in price that leads to an expansion in demand thus an increase in consumer surplus. The incurred surplus further leads to a net improvement in the country’s economic welfare. On the other hand, trade diversion is best defined as a change in local customer speeding from a zone of lower cost source to an area of higher partner cost source. It occurs because of the removal of tariffs on the imports acquired from the other partner countries. Trade diversion is commonly based on the existing tariffs on the external imports of the goods and services.

Article Review 2 Case Study Example | Topics and Well Written Essays - 1500 words

Article Review 2 - Case Study Example 19% of children had severe autism, 36% were moderately autistic and 43% showed symptoms of autism. 67% of children were 12 years or younger. 80% of the children were male. Questionnaires were used to get the Peruvian parents’ stress profiles which were translated in Spanish for easy understanding. The t-test was used for analyzing data. Research findings: `Research revealed that parents for children with autism were more stressed than those for children with no disabilities. The parents for autistic children with cognitive impairment and life span care were highly stressed. Security and safety were the main reasons for children as they could not be left alone and required constant looking after. Moreover, there was huge concern for their future welfare when parents would be no more. Taking the income group as independent variable, it was also found that financial aspect was not very relevant for parents from middle and high income group. But it was a critical factor for parent s belonging to low income group. They were considerably more worried because they could not afford care services for their children with autism. The children required specialized medical care and skill which was not easily accessible due to financial constraints. Stated implications by investigator(s): The study has important implications as it focuses on difficulties and anxieties faced by parents, caregivers and family. The plethora of problems like decreased efficacy, increased stress and other health related issues have negative impact on the autistic child and may even reduce or even nullify positive interventions. The major implications of the study revealed that stress had adverse impact on the overall development of children with autism. It significantly changed the behavior of the parents towards their autistic children which increased the potential for negative development outcome as against those parents’ behavior who were less stressed out. This was important beca use behavioral shortcomings of parents may also be reflected in the behavior of autistic child who could become more agitated and violent, thus endangering his/her own safety along with that of others. Bringing up of autistic children is onerous experience for parents, families and caregivers. It was also deduced that if the specialized services are accessible either free or at reduced cost to low income group parents of autistic children, they have better chance of gaining employment and meeting their needs as well as the needs of their children, especially autistic children. Full day care services will allow parents with more opportunities for employment and give them time for completing household and other important chores which was hitherto used in caring for their autistic children. This would reduce their stress level and help them to focus on the needs of their children with autism. Moreover, with local care centers, travel time would be significantly reduced thereby ensuring better care for autistic children. The self efficacy of parents therefore, emerges as key issue for improving and improvising the care services for autistic children. The cognitive and adaptive limitations of the autistic children were crucial issue for parents, family and caregivers as they significantly limit their ability for independent living. The fact they require some