For instance Pakistan is world’s fifth largest producer of sugarcane and it has plenty of excess sugar available which it supplies to India its neighboring country as India has a shortfall of sugarcane and sugar. Similarly India has an overproduction of tomato and other fresh vegetables that Pakistan needs due to less crop area as compared to its requirement. In this way while Pakistan sells its sugar and sugarcane to India that takes care of Pakistan’s excess capacity of sugar it also help to keep the prices of sugar stabilized in India. Similarly while importing tomato and fresh vegetables from India help Pakistan to keep prices of these commodities under control while India earns on its excess capacity. This movement of food items offers a win-win situation for both India and Pakistan while allowing both countries to have positive impact for their people and on their economy. Hence it is indeed very good idea to trade crops or food items for the benefit of each nation. However in order to ensure that the movement of food items does not spread diseases in the importing country it is essential to alert the plant protection and quarantine agencies of the importing countries. Each food item passing through Customs control of importing country should be subject to stricter laboratory tests to ensure that it is disease free. …show more content…
Each country has huge production capacities and millions of people are involved in factories to manufacture these goods. Mostly, the produced goods are in excess of the local requirement hence multi trillion world trade takes place every year. This not only helps the countries to sustain job creation but it also helps them to earn valuable foreign exchange and keep balance of payment situation stable. Some countries allow subsidies to their manufacturing sector which enables these sectors to produce goods below the normal price and hence they dump these goods into another country at very cheap prices which are even cheaper than in their own country which is called dumping of goods. These dumping practices sometimes affect the local industry of importing country and harm the local industry. To safeguard from these hazards World Trade Organization has been established which is a body formed by all the world’s major economic powers to settle trade related disputes and to ensure movement of goods across borders. In case of any dumping complaint the WTO may allow host country to impose anti-dumping duties that allow the local goods to come at par with the low priced foreign goods. The movement of manufactured goods also helps countries to raise revenue in terms of customs duties and other taxes levied at import stage. Some countries