Mental Trade Management

many people forget that you trade more than just money when you trade. You are affected mentally every time you place a trade. Your confidence grows when you are on a winning streak. You feel like you can do no wrong.

Losing a trade or a row of trades is never fun. It can make you frustrated and unhappy. And who can blame you for feeling that way. A loss of capital can cripple your account making it harder to get to where you want to go.

That is definitely why you want to lose as little capital as possible when you are wrong. It is all about risk management.

But so many people forget that you trade more than just money when you trade. You are affected mentally every time you place a trade. Your confidence grows when you are on a winning streak. You feel like you can do no wrong.

However the flip side is also true. When you are on a losing streak you can feel terrible. You can feel like you never want to trade ever again. It can be hard.

The market come with surprises and can definitely get the better of you at timesFeature Articles, no matter how good of a trader you are. They just can’t be controlled.

But even though we can’t control how the markets will move what we can control is how we react to them. If we have just been beat up we can choose to do one of two things. We can say we never should have traded in the first place and walk away or we can learn from our mistakes and use it to become a better trader.

Trading is a game that you are constantly learning how to improve on. I am confident that every year I become a better and better trader. When I make a mistake I quickly learn from it and apply what I have learned in my future trading.

If you want to be successful in trading you have to do the same. There is no way around it. Concentrating on learning from your mistakes and building your confidence are the two most important parts of mental trade management.

Car Buying Tips: The Basic Truth about Car Dealer Trade Values

Trade allowance. Trade difference. Actual cash value. Replacement value. Anticipate market change. Stealing a trade. Trade stretching.

These are all terms that dealerships use. They are not made up or designed to rip off the customer, but an informed consumer can use this information to make a better deal for themselves.

The most complex aspect of buying a vehicle from a dealership is working with the trade in. Despite most consumers’ best efforts, it’s often difficult to get a straight answer to the question, “How much for yours, and how much for mine?”

It usually isn’t an attempt by car dealers to be obtuse or really “stick it” to the customer. In truth, most consumers would laugh if they knew how much the dealership is actually giving them for their trade.

There is “Actual Cash Value” and there is “Trade Allowance”. Most dealers submit trade allowance for review when negotiating with customers because not getting enough for a trade-in is the most common reason for someone to walk away from a car deal.

Actual cash value (ACV) is just as it sounds. All things being equal, if the dealership were to stroke a check for a vehicle without selling one back to the customer, this is the amount that the dealer is putting into the vehicle. It is often the same as replacement value (how much it would cost to pick up a similar vehicle wholesale or at an auction) but not always. There are other factors, but for this article, just the basics.

Trade allowance is ACV plus profit reduction from the cost of the vehicle the auto dealer is selling. They aren’t “giving” that much for the trade-in, but they are “showing” that much in the trade-in.

For example, let’s say the dealership is has an asking price of $20,000 on a GMC 1500. This dealership actually owns the truck for $17,500. They place an ACV of $9,000 on the trade in.

After some back and forth negotiating, they offer $10,000 for the trade and take $500 off of theirs. That would be $19,500 minus $10,000 for a trade difference of $9,500. The consumer may like this deal.

In reality, they are still only putting $9,000 in the trade and taking $1,500 off of theirs, yielding a profit of $1,000. But if they present the numbers as $18,500 for theirs and $9,000 for the trade, the consumer is more likely to walk away from the deal, even though the trade difference is still the same.

The reason: people want more for their trade than what the dealership really wants to put into it. By believing they are getting $10,000 for the trade and a modest discount on the truck, they are more inclined to pull the trigger.

It isn’t some evil dealership scam. It’s simply adjusting to the buying habits and preferences of the consumers. Still, there is a way to find the true value of a trade.

Every city has a handful of dealerships that buy vehicles off of consumers. Carmax is spreading rapidly across the US, plus establish independent dealers such as Oklahoma City Ford Trucks still make cash offers for vehicles.

If a consumer prefers to get a ballpark via the internet versus having to go to an appraisal, they shouldn’t check with car value sites such as Edmunds or Kelley Blue Book. While these are excellent resources for new cars, they are often inflated on their used car values.

Consumers should find out what vehicles similar to theirs are actually selling for. Used car sites such as Memphis Used Cars have databases. Whatever dealers are selling theirs for, deduct $2,000-$4,000 for vehicles under $30,000 to get a ballpark of what dealerships are actually putting into vehicles.

Use this information when negotiating. Many sites and articles recommend holding the trade in information as a secret until later in the deal. This is pointless, wastes time, and is counterproductive to getting the best deal.

It may make the numbers more accurate, since a dealership will be more inclined to offer their true best price on a vehicle if there is no trade to account for, but it won’t help save money. Once the trade is presented, the numbers on it will simply be lower than if it was presented originally. In fact, the wasting of time and displaying dishonesty in the negotiations can actually hurt the value.

Be upfront, but have the knowledge of the trade-value handy. If you know someone will stroke a check for $10,000 and the dealership with your next vehicle offers $9,500, pull the trade out of the equation, sell your carArticle Submission, then buy the new one without trading. It’s simple.

International Trade – The Advantages on Global Level

International trade is the most important term used in trade and business. Such trade is carried out of the boundaries of a country for earning more traffic.

The definition of international trade is not very different from the usual way we define the trade. The only difference is that the emergence of trade crosses geographical boundaries. A country may consider global trade in an effort to give GDP a boost with great speed. Global business is nothing new to the world of business. We have been trading across borders since he found a method to move past the boundaries of the past modes of transport, but the trade path made these days is much more complicated and lucrative than it used to be.

International trade is also important for the value of life today; I imagine that if our choices were limited to what we can produce in the country. No goods and services available to other countries, would be living in a world limited to what we are given, this is against the principle of humanity’s growth. International business also involves high costs because the price of the product or service, the national government usually imposes tariffs, time costs and the many other costs involved in moving (usually) the goods through in a country where there are various obstacles.

One of the best drivers in the world of international trade we have today is China, where labor is plentiful and cheap. Many physical goods considered and produced by the U.S. and other European countries are assembled or manufactured in China, where labor is cheap. This is very distinctive because it is a measure that can save money and efforts of the country of origin. In addition, opening the door for China citizens now has more income opportunities to make their life better.

However, when a country is very much in international trade, although it creates opportunities for exponential income locals for the import or export much of anything can cause damage to the local scene. During the recession, countries are under pressure to change local laws governing international trade to protect local industries. Each country related to global business has its own laws and statutes governing their own trade policy, but worldwideFind Article, trading activities are monitored and done through the World Trade Organization.

Thus global trade plays a very significant role in promoting and exploring your business on a global level.

Trade Shows

Some believe network trade shows are more profitable. While others, think a trade show that deals directly with the consumer has more advantages. The secret to successfully marketing your business at a trade show lies in the tools you use. If you have a dynamic personality, make your next marketing strategy a trade show.

Secrets to Promoting Your Business at a Trade ShowTrade shows show promise as a “golden” marketing opportunity. Many business owners are stepping outside of the traditional box and investing in portable signage. Talking one-on-one with potential buyers provides an immediate gratification that is empowering. The trade show makes highlighting business services or products easier. Plan Ahead Working trade shows requires some planning. If possible, visit the facility prior to selecting your booth. Walk through the facility looking for potential problems that would inhibit your success, such as:
Food court: Although being located next to the food court could be beneficial, it creates a distraction. It’s difficult enough to interest a potential buyer in 3-minutes; you don’t need the sweet smell of cotton candy interrupting.

Competition: Don’t be suckered into renting a booth that is right next to a competitor. Some people believe its quality that counts and are eager to take the challenge of competition.

Accessibility: Ideally, your booth should be near the entrance or exit of the building, or the restrooms, or the main isle. Wherever there is an adequate flow of traffic.

The location of your booth and the signage you use will have a direct result of your trade show success. Stay focus on the appearance of your site. Use a banner to display your company logo, web address, and phone number. It’s important you capture the attention of potential buyers with signage and color.

Keep it short and simple, K. I. S. S. Use a secondary color to present information of importance. The two-tone color method adds depth and retains the attention of the reader and that’s a big advantage.

Most booths are no more than a 9` by 5` area. So it is equally important that you make valuable use of the area. Eliminate any unnecessary clutter and keep things organized. It’s important that your potential buyer doesn’t become distracted.

Offering a special is also a good way to bring more people to your booth. Use a tripod and display board to feature your special offer. Write clear and in large lettering. Be prepared to answer questions. Working a Business Trade Show Business trade shows go hand in hand with network marketing. The primary purpose of this type of trade show is to draw the interest of other businesses. Your objective is to provide enough information for the other participants to promote your services or products by word of mouth or through passing literature.

It’s common practice for business groups to exchange business cards and brochures at a business trade show. Each booth gives a 2 minute presentation to visitors, a free gift (ink pen, magnet, sticky notes, or eraser), and ask for the visitors literature. Professionals shake hands and begin asking questions.

• How can I assist you?

• What are the benefits of using your services or products?

• Who is your target market?

• How can potential buyers reach you?

• Do you work outside of your area?

Business trade shows are not limited to business owners. Most vendors will invite others that may profit from using the services or products of the network group. Finding a good booth, using the proper signageFeature Articles, and displaying a sample of your services or products are all important elements of trade show marketing

Trade Your Christmas Shopping For Fair Trade

So why should you consider looking at Fair Trade gifts this Christmas time? In fact what is Fair Trade? – “Fairtrade is a strategy for poverty alleviation and sustainable development. Its purpose is to create opportunities for producers and workers who have been economically disadvantaged or marginalized by the conventional trading system”.
And what can you expect buying Fair Trade?

Well, for a start exquisitely made (more often handmade or from recycled materials) and original items can be found, and also perfect gifts for Christmas and the festive season this year. Products sold from the best UK fair trade stores are from suppliers that are members of British Association of Fair Trade Shops. These products are not only eco-friendly, but made by wonderfully skilled artisans, all the more reason to feel truly happy when buying fair trade gifts.
Often known as a ‘double giving gift’- Firstly, the buyer can rest assured that the gift is not only good for the lucky recipient, but the money from the purchase helps support the British Association of Fair Trade Shops (BAFTS). This organisation includes shops and vendors that are dedicated to enabling hard workers and expert crafters to produce their wares and to be paid fairly for those products. These truly positive relationships form bonds of trust and friendship between the producers and the suppliers and also open up wonderfully diverse markets to us, on the other side of the world. There are individuals, families and entire communities that make their entire income trading through BAFTS and really reap the benefits of this sustainable way of providing a living.
While being a social project, the ‘fair trading’ that such shops engage in with BAFTS is also an environmental one. The local artisans that make the products sold are working for a fair wage, and live in healthy surroundings. There are no big industries polluting the air or looking to simply make the fastest ‘buck’. The products are made from raw, sustainable or recycled materials. Wood has been ecologically cultivated and paints are from natural sources and are non-toxic. Fabric and paper is made from natural, biodegradable fibres. So make that a ‘triple giving gift’ – Recipient, Producer and Environment!
The scope of Fair Trade is worldwide, which of course opens us up to more and more cultures and markets, as local producers give us the chance to discover their own wares. Each company and association that produces for BAFTS uses natural, sustainable resources from their country – like local clay, wood, grasses, recycled metals, etc. From these countries BAFTS is supplied, like from Nepal, India, Indonesia, the Philippines and Peru and we then get to enjoy the fruits of their labours. The artisans are happy to be using their artistic skills and to show off their ancient traditions, while being paid to make unique, interesting and useful items like paper, bags and totes, cloth, glassware and so much more. These people are able to provide better food and clothing for their own families, send their children to school to get an education, implement better social welfare and health programs for their communities and so much more.
When someone buys products from a fair trade shop they can really feel good about their purchases. Whether they are buying handmade jewellery for someone they love or an eco friendly or recycled gift, they are also buying a treasure that has been hand crafted by an individual who is an artist. These skilled artisans are from developing countries and they are so glad to put their expertise to use and make a fair wage to support their familiesFind Article, and improve their communities. They are using environmentally sustainable methods and materials that benefit the entire the world.

Successful Trade Shows Need Great Trade Show Displays

Your trade show displays are a major determining factor as to whether you will have a successful trade show exhibit or not. You need to use high quality displays that will attract visitors to your exhibit. You want to make sure that your trade show display not only attracts visitors it should make them want to know more about your product and services. You want your trade show display to be neat and it has to be visible so visitors will know what message you are trying to get across. You can use a display board to put some of your products on. Make sure the display is at eye level to draw them in. The display board should be nicely organized and not too cluttered. You should also make sure all your prices are clearly marked. Your customers will want your items if they think they are in high demand. You can put a sold sign on one or two items. This will make visitors to the trade show think that they better purchase your product now because it might not be available later. You can use interactive trade show displays to attract a crowd to your exhibit. You can use surveys, computer games, drawings or demonstrations. You don’t have to have an elaborate presentation or demonstration, just something that will peak the visitors interest. Giveaways and promotional items are also a good way to attract visitors. It is also a good way for the visitor to remember you after they have left the show. Make sure the promotional items are something people will use or look at often, such as magnets, key rings and pens. It’s better to place your promotional item in a place where they have to walk into or through your exhibit to get one. You can use a drawing or contest to attract visitors and it is also a way to collect contact information. The contact information can be used after the show to contact potential customers. You can have a drawing for a promotional item or you can use one of your products as a prize. You want to make it easy for your visitors to get information about prices, minimum orders or other basic information. You can provide this information by using signs and graphic displays that are easy to read. This way a visitor already knows exactly what you have to offer without having to ask. One very important thing to make sure you have is plenty of marketing materials. You will want color flyers and brochures. You will also want to have plenty of business cards and order forms available. That way visitors will have information about your product and services they can refer to at a later date. You want your trade show exhibit to look professional and organized. You should make sure you have table top covers to give the space a unified look. You can use table top or floor displays to get your message across. You can use literature racks so your marketing materials are easy to get to. All of the things above will help you to have a successful trade show exhibit.

If You Own a Trade Show Pop Up You Will Have Great Success at Marketing Trade Shows

Current technology has come up with trade show pop up equipment that surpasses all its predecessors for sheer lightness and economy of design. Although lightweight they boast of durable materials and lasting construction. They are collapsible to some extent, some models more so than others. The frames used in these displays can be bundled in a way similar to the mechanism of the umbrella. After that they may be safely deposited into their custom containers Pop up display tables have assumed new functions. These may be fitted with shelves to place papers and other paraphernalia needed when transacting with visitors. They may, on the other hand be hollow within. In such a case they serve as the main containers of the items included in the trade show pop up. Bringing the display from one place to another becomes child’s play and the container fits comfortably inside a car. The technique used in constructing trade show pop ups makes it possible to assemble them without having to use heavy duty tools, as was usual in the past. Assembly time can be in as little as a few minutes. Because they are capable of being conveniently carried around and quickly assembled without the use of complicated tools they are ideal for ladies. The simplicity of their structure notwithstanding, trade show pop ups can be fitted with an impressive range of features, such as shelves, lamps and even LCD screens. With the correct type of customization they be made to look just as impressive as full-fledged display furniture Animated displays and shelves are not the only ways to enhance the functionality and beauty of trade show booths. Logos may be custom printed on cloth and used as the panel of metal frames or as décor in front of the desk and on the backdrop. Not one but three and maybe even more animated displays can be incorporated in the pop up Trade show pop ups are particularly suited for small businesses or outfits that deal in non-physical commodities and commodities, like real estate that cannot be transported. Examples of non-physical products are prepaid cards and postpaid subscriptions and insurance. They are ideal for new-product promotions or for holding press conferences about products soon to be found in the market. If it is the trader’s purpose to sell physical commodities in these pop ups he will have to place the products in a bag, place the bag in the rear of the display and have someone to watch over it. Most trade show pop ups are rented from companies that produce them. Today, a trend for buying pop ups has been started by the entry into the market of lightweight displays. These displays are comparatively lightweight and can be brought along easily from one trade show to the next. Purchasing them instead of continuously renting makes it possible for the user to save a lot from the money he pays every time he needs to rent one. Since the most economical models can be carried as easily as carrying a suitcase, it is no longer a hassle for any salesman to bring them anywhere he intends to display them.

How Can Forex Charting Software Aid Forex Trading?

Forex trading involves a lot of complex activities and using software to help analyze data movements can enhance trading profits and bring better trading results. At anytime, in a day, currencies can fluctuate and when such fluctuations happen, it is a signal for the trader to take advantage of a profiting opportunity. Forex charting software is a tool that can predict currency fluctuations, which can be further analyzed to forecast how market prices will rise or fall.

Forex charting software creates charts that show the course of a currency rise and fall, in a given duration. The charts can be used to determine the momentum of forex trade and this can help traders to determine which currency investment is best, when to buy and sell so that they gain the profit they seek through such software. This software has certain indicators that can be used by trader to make their trading moves. It provides trade frames that can be used by the trader to carry out research into trading.

There are many charting software packages available in the market, but to select an efficient one, it is vital to check rating, read reviews and look at forum discussions on it so that you get one that is consistent in its functioning.

The chief advantage in using this software is that it enables you to take informed and weighted decisions, based on various analyses. The software makes use of high, low, open and close points over a period of time, and combines them to analyses prices, which can be used by the trader to make he right decisions. It checks into past and present currency rice fluctuations and predicts future trends, which can give a trader an edge in trading. It gives analysis across various accounts using different types of charting tools and provides alerts when it arises. The real-time data that is provided for chart extrapolations and analysis can be exported to an excel sheet for a detailed analysis before making an informed decision.

The EFTA-SACU Agreement – Connecting Countries Through Trade

Free trade agreements are typically established between countries that share various demographics in common – most notably proximity. Countries that enter into treaties with neighboring countries demonstrate their willingness to remove tariffs on goods that cross borders, and in turn the respective governments attempt to reconcile political and other differences through cooperative trade. When countries firmly established in one FTA work toward expanding the agreement to include other nations, the opportunity for improvement in economy increases.

The European Free Trade Association (EFTA), founded in 1960, consists of four small countries that nonetheless have proven important in various trade sectors, in particular banking and finance. Their association with the Southern African Customs Union (SACU) in a treaty finalized in 2008 signifies an agreement designed to benefit both regions as customs are eliminated on imports to Europe and Africa. SACU countries receive ample supplies of medicine and machinery to aid improvement in their industrial sectors, while the EFTA nations may import needed precious metals and natural resources more commonly found in Africa.

The EFTA is comprised of:

Iceland – Iceland’s small economy does exceed that of some SACU nations. Their somewhat isolated location in Northern Europe makes trade practically a necessity, and for their part Iceland exports fish and byproducts and select minerals.

Liechtenstein – Liechtenstein’s prosperous economy may stem from low taxes and ease of incorporation. The nation’s primary exports include machinery, audio and video components, and electronics.

Norway – Foreigners may associate Norway mainly with the fishing industry. While fish is a prime export, the country also trades out petroleum and machinery.

Switzerland – The world is familiar with Swiss chocolate and precision Swiss watches and clocks, but this only scratches the surface of their main exports, which also include pharmaceuticals and electronics.

SACU is comprised of:

Botswana – Botswana has enjoyed progressive economic growth in the last three decades, well before the EFTA-SACU agreement. Precious gems and metals – diamonds, coppers, and nickel – represent the bulk of the country’s exports.

Lesotho – Since finalization of the joint agreement, about one fifth of all the country’s exports – textiles and diamonds – are sent to EFTA nations while the rest are exported to SACU partners and the United States.

Namibia – Namibia is a nation rich in precious gems and metals, including diamonds, copper, gold and zinc. Despite these major exports, mining represents a very small fraction of overall employment.

South Africa – Perhaps the largest economy among SACU nations, South Africa is the world’s largest producer of platinum and gold.

Swaziland – Mining plays an important role in this nation’s economy, though resources have depleted over time. Swaziland relies mainly on wood and sugar to export.

Since coming to an agreement in 2008, the nations of EFTA and SACU have noted an increase in value of their respective trade merchandise. In 2010, nearly $3 billion worth of goods traded between member nations, and future endeavors hope for steady growth. Recent meetings between EFTA and outside nations, including India and Indonesia, may also bode well for SACU nations if there is an opportunity to expand on trade through their association with Europe.

Developing Countries And Trade:

Developing countries and trade:


International trade is an important source of foreign income in almost all developing economies, these countries are referred to as developing due to their low GDP level and they are faced with high levels of poverty and unemployment, according to David Ricardo and Adam smith international trade plays a crucial role in the development of an economy, the Mercantile theory of development states that trade led to the wealth of nation.

This paper discus the various problems that the developing countries face in international trade and their effect on the agricultural, industrial and service sectors. Some of these problems are external while others are internal problem. Some external problems include competition in the global market, tariffs and other trade barriers, required quality standards. Some internal problems include high cost of production, tariffs of inputs and

Problems faced by developing countries:

There are various problems that developing countries face in international trade which will be discussed; this paper also provides possible solutions to these problems of trade. Some of the problems include trade barriers, unfavorable terms of trade, high quality standards,

Agricultural sector:

A large portion of GDP in developing countries depend on agriculture, agriculture helps in providing food to the population, providing employment and surplus is exported to other countries. Foreign income highly depends on agricultural products exported and also tourism, however agriculture plays an important role in these countries in providing employment and food, there are various problems that these developing countries face in this sector and they include:

Trade barriers:

High tariffs are imposed on imports in international trade; tariffs are a source of revenue to the government but at the same time they restrict the level of imports in a country, the agricultural sector in developing countries are faced with this problem because their good become more expensive in the internal market due to imposed tariffs.

The tariffs will reduce the amount demanded due to the increase in price, therefore the agricultural sector is faced with the problem of declined demand for their products, and for this reason therefore the surplus amounts produced is not exported.

Bans and quotas are also trade barriers that cause problems in internal trade, in the case of quota the developing countries are only required to export a certain quantity to country, this is a major draw back to the agricultural sector in the developing countries.

High input costs:

Most developing countries import inputs such as fertilizer, pesticides and oil, their cost in the internal market are usually high and some producers cannot afford these costs, for this reason therefore the cost of producing the agricultural products is usually very high making the final price for these products to be high.

Therefore the high cost of inputs will lead to an increase in the cost of production, the final price of the agricultural products is usually very high and therefore less competitive in the internal market, for this reason therefore the agricultural products are usually less demanded in the internal market due to competition from more efficient producers.

Oil is also a major input in production in each and every sector in an economy, the developing countries in most cases will import oil from developed countries where prices fluctuate frequently, and the cost of oil will lead to an increase in the cost of production of these products leading to less competitive prices in the internal market.


Many countries subsidize their agricultural sector in order for them to produce more, this has posed a major problem to the developing countries that cannot afford to subsidize its agricultural sector, subsidizing of agricultural production in developed countries result into a reduction in the cost of production and therefore the country demand less imports.

Subsidies therefore will create problems to the agricultural sector in the developing countries; this is because the developing countries produce more at low prices that are more competitive in this market.

Technology and mechanization:

Developing countries import technology and machinery from the developed countries, these machines help in increasing production and also bringing down the cost of production, however due to the high cost of these machines the developed countries prefer to use labor intensive methods of production due to high initial cost and also maintenance costs.

The lack to use modern machines and technology in production lead to low levels of exports and also high costs of production, for this reason therefore the developed countries remain with the problem of underproduction and also low exports.

The lack of machines that help in turning the raw materials from the agricultural sectors into finished products lead to increased disadvantages to the developing countries, most developing countries export raw materials whose prices in the international market is low, developing countries should therefore start exporting finished products from the agricultural sector rather than export raw material.

Some developing countries use genetically modified plants for production, these products are more productive where the time taken to grow and also the production levels. This is a challenge to the developing countries to adopt modern technology to increase production and also reduce costs of production.

Lack of product diversity:

Developing countries export approximately the same product to the internal market, this leads to increased competition and the developed countries have power over them on deciding from which country to import from, and further the developed countries will set prices due to high competition in the global market.

Product diversification means that the developing countries should not produce the same goods for exports; they should try and diversify the products they exports in order to reduce competition and therefore increase the foreign income received. This should involve the introduction of new products to be produced in the agricultural sector that are to meet the demand for consumers abroad.

Unfavorable terms of trade:

Terms of trade will also be a major problem to the agricultural sector, developing countries exports are mostly agricultural products and they will import machinery and oil from developed countries, this poses a major problem in the terms of trade and this finally results to trade balances because the imports have more value than the exports they produce.

Lack of proper bargaining power by the developing countries lead to them experience a problem in setting prices, the developed countries will give their decisions on the price they are willing to pay for the products and because the supply in the global market for these products is high the developing countries have little control over the export prices and the problem of terms of trade arises making imports expensive than the exports.

Debts and balance of trade:

Due to the problem of balance of trade and terms of trade the developing countries are faced with the problem of debts, developing countries face balances in trade adding to the problem of high debt levels to finance debts, for this reason therefore the developing countries may restrict imports in order to reduce the level of debts and therefore less inputs to the industries and agricultural sectors, for this reason therefore the country will not be in a position to increase production to offset the debts earlier incurred.

Quality and standards:

Developed countries and developing countries tradfe partners set high standards for products exported, this lead to frequent ban on products produced in developing countries, A good example is the ban on fish imported from east Africa during Idian Amin reign, the reason was because the dictator had all the disabled people thrown into lake Victoria and therefore it was unhealthy to import fish from the lake.

From the above example it is clear that developing countries will ban imports due to various reasons, in the example it was evident that most fish exported from east Africa was tilapia, tilapia fish is a glazer and fed on sea weed and not meat, however due to the act of the dictator fish imports were banned for health reasons.

Other products have also been faced with the same problem, example beef from developing countries where a certain disease outbreak may result into a total ban in the exports of these products even after health checks on the slaughtered animals. This is a major draw back to the agricultural sector.

Processing and transportation:

Most of the agricultural products require that they are processed before being consumed, most of these products are perishable and require to enter the market within the shortest time possible, this requires that the developed country to device ways by which this is possible but due to security reasons some products get stale before they enter the market. For this reason therefore there is a need to process these products before they are transported.

The other problem is that some products require refrigeration example flowers, vegetables and fish and due to lack of capital to purchase and maintain these machines, for this reason therefore the products are not of quality on entering the market. Poor transport and communication network in developing countries also hinders the movement of good, for this reason the surplus products produced in developed countries does not find its way into the market resulting into less products being exported, for this reason therefore the developing country government has a role to play in ensuring supportive infrastructure exist which will aid in transportation of goods to the market.

Bureaucracy in international trade:

Most developing countries are faced with the problem of bureaucratic policies formed by developed countries, a country may export a certain product to a developing country but it is required to import a certain product from the developing country, these are bureaucracies that lead to trade diversion where developing countries may be forced to import good from a high cost country because it exports the products to that country.

These bureaucratic policies harm the developing country agriculture sector whereby they are required to import a product from a country where it exports to its product failure to which they are denied access to the market. These bureaucratic organization also set the prices they buy the imports from the developing countries, this is amjaor draw back to the agricultural sector in the developing country because developed countries will set prices for the goods imported from these countries and also set the prices for the inputs into the agricultural sector.

Industrial sector and services:

The industrial sector in developing countries is still in its initial stages of development, developing countries will protect these industries though tariffs and quotas to protect infant industries, the countries will also try to help these industries by subsidizing the products in order for them to gain competitive advantages in the internal market, there are some problems that this sector face in international trade and they include:

High cost of inputs:

The industrial sector will demand inputs from foreign countries and in most cases the cost of these inputs will be very high which will make the cost of final products to be high, the industrial sector products therefore will have a higher price in the global market reducing their competitiveness in other countries, this is a disadvantage to the industrial sector.

Some of these inputs include oil and oil products that lead to an increase in the cost of production if their prices are increased by oil exporting countries; the cost of production caused by high input prices is therefore a major disadvantage toward the development of the industrial sector in developing countries. However there is need for the industrial sector to adopt other alternatives as sources of energy and also substitute imported inputs with locally produced products.


Developing countries fail to make a break through in science and technology, they do not undertake sufficient research for technological progress, for this reason their products do not meet the quality of the products in the international products, developing countries are highly advanced in technology and will produce high quality products that are very competitive in the market, for this reason therefore the products produced in the industrial sector does not meet the standard set by internal traders.

Therefore it is evident that developing countries face challenges in the production of goods where they are required to produce high quality goods but they are unable to met these standards due to the lack of technology and machinery that aid in improving the quality of the good they produce.

Quotas and tariffs:

Developing countries will have infant industries that they protect by means of tariffs and quotas; however trade partners will be against this move and will result into an imposition on more tariffs on goods imported from such a country, this therefore leads to problems in the international market.

Tariffs and quotas imposed on the imports by developing countries also pose a major problem to the industries, this is because the cost of production rises far beyond the equilibrium global market prices, the developing countries impose these tariffs to earn revenue from imports but at the same time the industries face problems.

Tariffs imposed on their exported products is also a major disadvantage to the developing countries, their products become very expensive in the international market due to these tariffs leading to reduced demand for these products, this is a problem that can only be resolved through formation of trading blocks.


These developing countries aim at producing good for exports but they are faced with stiff competition from other countries producing the same good, high competition leads to a reduction in the global market prices posing a threat to the industrial sectors in developing countries, high competition in the global market therefore leads to reduced earnings from exports by developing countries.

High competition also occurs as a result of trading partners producing the same goods they import from the developing countries, these products are substitutes to the products imported and in order to reduce the level of imports they subsidize the production and at the same time impose tariffs on imports and therefore the developing countries loose the international markets they earlier acquired.

Lack of product diversity:

The industrial sector is also faced with the problem of the lack of diversity in the industrial products they export. This lead to increased competition which would have not been present if the countries produced many different goods for exports, for this reason therefore there is a need to diversify on the products produced by the industrial sector.

Most developing countries will have industries that do not completely convert raw materials into finished products, this leads to the disadvantage that the industry receive less for exports than when it would have converted the products to their final stage, this happens however due to lack of machines and capital to undertake processing, therefore it is important that the industrial sector produces fully processed products for exports.


Bureaucracies in internal trade also affect the industrial sector where developed countries set conditions regarding trade, they require developed countries that export products in their country to import their products, for example a country that exports coffee to a developed country is required to import inputs such as fertilizers and pesticiedes from the same country leading to problems in the industrial sector.

Bureaucracies also distort the free market in international trade by setting the prices for products from developing countries, therefore they determine both the input prices and the export prices in developing countries, this is major problem in the development of the industrial sector in developing countries and this is what is referred to as neocolonialism.

Loans and grants from developing countries also lead to problems in international markets, developing countries may be offered a grant or a loan but with strings attached or conditions attached, they may require the developing country to purchase certain products from them or even other conditions that may hinder efficient exchange of goods in the international market, the developed country do this for their own benefits and the developing remain poor due to these problems faced in trade.

Service sector:

Trade involves trade in both goods and services, services include the trade in services provided by countries to other countries, these services in trade can for example be viewed as outsourcing services, most companies in developed countries outsource in developing countries due to low wage rates demanded, for this reason therefore there is an exchange of services for income.

This sector has developed as a result of improved communication network all over the world allowing people to get employed by companies abroad, however the lack of proper communication networks in developing countries creates a major problem to this sector and there is less income sourced through these methods.

Therefore one of the problems is lack of support infrastructure such as communication networks and also electricity supply in remote regions of developing countries. this hinders the development of this sector resulting to reduced income from this sector.

The other problem is the high income taxes imposed on this type of sourcing, most countries will demand revenue from firms in this sector which makes it difficult for the sector to develop, as a result this sector remains underdeveloped to its full potential due to high tax imposed on income.

Despite the high foreign income potential in this sector the developing countries have not focused on its development, according to the various trade theories the free movemtn of goods and services between countries will result to equalization of factor incomes, however this is not the case and the developing countries still remain low income countries where labor is cheap and capital is far much expensive.

There are inputs for this sector such as computers and other machines that are imported from developing countries, they are very expensive and developing countries will impose taxes on these products making them very expensive, the high cost of inputs results into high cost of production and therefore they are less competitive in the global market.

Bureaucratic organizations also affect nthe service sector in developing countries, certain conditions put in place by developed countries hinder the proper running of the service sector, conditions are put in place by these bureaucracies that affect the service sector where the developing country must adhere to in order to participate.

Possible solutions:

The industrial sector and agricultural sector should adopt modern technology to help increase production and also increase efficiency, when this is done the sectors will experience scale economies and also a reduction in the costs of production, technology should be adopted in the agricultural sector where machines should be introduced to perform various tasks increasing efficiency, the other option is to introduce genetically modified plants and seeds that are more productive, when this occurs the final product prices will be very competitive in the global market.

The other possible solution is through formation of trading blocks with trading partners, this will lead to opening up of trade and formation of free trade areas, and this will lead to increased specialization among countries that will aid in formation of free trade areas, specialization will result into reduced global market prices of products resulting into improved standards of living among countries.

Reduced tariffs on industrial inputs will also result into an added advantage into the industrial and agricultural sector, this will make the inputs more affordable and therefore the cost of production will be reduced significantly resulting into more competitive prices in the international markets.


From the above discussion it is clear that both the agricultural and industrial sector face major problems in international trade, some of the highlighted problems in this paper include trade barriers, lack of product diversity, quality and standards, high costs of inputs, terms of trade, lack of technological advancement and competition from other countries.

The service sector also faces various problems in trade, outsourcing involves providing services to oversea companies which in turn pay for the services provided, however lack of support infrastructure results into reduced income levels in this sector which remains less developed yet the high potential for foreign income

These problems can however be resolved through formation of trading blocks that will help achieve free trade among countries; this will ensure that goods and services exported are competitive in the market. Other solutions include subsidizing and protection of infant industries which will help products to b e more competitive in the international market.

Other challenges faced by these developing countries include the bureaucratic policies put in place by developed countries, developing countries are required to follow conditions put in place by these copuhntries for it to continue trading with the developed countries, this is a major problem that should be eliminated to allow proper runni9ng of a free market in international trade, however this requires the developed countries to seize giving conditions to the developing countries to enable them to develop.

Developing countries governments should also come up with policy measure that help in providing support infrastructure such as road networks and also communication networks, this will help improve internal problems faced by these sectors. Further improvements in policies should be aimed at reducing costs of inputs through zero tariffs on industrial and agricultural inputs imported.