International Trade Relations
With the developed economies of the world experiencing a severe downturn and displaying signs of post-recession fatigue syndrome, on the other hand it is the Asian economies that are flexing their muscles in order to comprehensibly manifest their economic and financial hegemony and assertiveness in restructuring the institutional trading framework. (Carbaugh, 2004)
In contemporary context the trade relations between US and India are highly significant as it has provided US the opportunity to rejuvenate its bottoming economic status by finding valuable employment for its labor in Indian markets. However in order to extract maximum advantage and benefits from these trade agreements and diplomacy it is important that both countries ease trade restrictions on all levels in order to facilitate the influx of goods and services. The developed countries like the US and the EU need to revise their trading policy for developing economies like India especially in regards to agricultural commodities and services. (Bhaumik, 2004)
Some economic experts also suggest that flexibility in establishing amiable trading ties must be demonstrated by developed economies as many developing countries are not even able to meet the associated costs during trading activities.
Moreover the restrictions created by tariff barriers in economies like India can also act as a major hurdle in the triumph of fruitful economic relations, but even in that case global markets need to provide considerable access to developing economies in order to provide them adequate compensation for the reduction made.
Hence in conclusion it can be said that in crucial and capricious economic times existing contemporarily it is important for both countries to exhibit proper flexibility either in introducing their products globally or acquiring incentives that can help in boosting the graph of financial performance.