INTERNATIONAL TRADE AND THE WORLD ECONOMY

The world economy is taking big strides and moving ahead at a remarkable pace. Globalization has affected the economies of various nations.

Due to the rapid development of efficient communication tools and increase in corporate events, economies worldwide are all set to adapt themselves to the dynamic market conditions. International trade and the world economy are two inseparable entities and need to be addresses simultaneously. Hence, an international trade system ought to be designed, which meets the requirements of the changing world economy.

TRENDS MANIFESTED IN INTERNATIONAL TRADE AND THE WORLD ECONOMY

More and more companies are making their global presence felt by a strong network. This has given rise to diversification in international transactions. It may include direct investments, trade and services. There is an increase in economic activities in all nations.

This has necessitated the introduction of certain guidelines, which govern international transactions. In the absence of these guidelines, there could be disharmony among the trading nations. Due to international capital movements, the lacunae prevailing in the economy of a particular country are revealed. This may affect the economy of other countries as well. This may happen through external assets, trade and investments.

Studies reveal that, if the equilibrium in the world economy is disturbed, it could lead to dire consequences like: Pressures from protectionist; it could upset the financial as well as the monetary systems and negatively impact the international trade system.

KEY FACTORS IN INTERNATIONAL TRADE AND THE WORLD ECONOMY

• International trade can be referred to as successful, only when the trading nations are equally benefited. It is obligatory for a particular nation to have more production output for exporting goods to another nation.
• In the absence of trade, the relative prices of goods differ from one country to another. The relative prices, then indicate the comparative advantage.
• When there is trade, relative prices of commodities are equal. This is further ensured by arbitrage.

ROLE OF WORLD TRADE ORGANIZATION IN INTERNATIONAL TRADE AND THE WORLD ECONOMY

The World Trade Organization or the WTO, was established in the month of January, 1995. The WTO was formed to take care of the system of multilateral trade activities. It is also responsible for the execution of several agreements pertaining to multilateral trade.

For further enquiries or instruction in respect of international trade law, please contact us at stralexgroup@gmail.com.

You may also call us on +254 773 865 798/ +254 734 330 677.

Yours sincerely,

FOR: STRATEGIC LEGAL SOLUTIONS GROUP LIMITED

GLOBALEX CONSULTING GROUP

© 2012, Strategic Legal Solutions Group Limited

BENEFIT OF INTERNATIONAL TRADE

Benefit of International trade is enjoyed by both, the exporting nations as well as importing nations.

Some feel that the commodities imported is the actual benefit of international trade, whereas, export activities involve a lot of expenses. The "Balance of Payments", including payment for services as well as goods; yearly capital fluxes entering in and moving out of a country, is more or less stable and remains in equilibrium and requires few adjustments.

Studies have revealed that United States of America, has a highly competitive market, and by investing in America, the returns are good. Benefit of international trade is also evident from the inflow of capital into bonds, real estate industry, stocks, securities(government), which has escalated from USD$58 billion to a whopping USD$733.4 billion in the last few years. In the year 1997, United States of America, had a inflow of capital, worth USD$254.9 billion. As trade deficit became three times, between the years 1992 through 1997, economy of United States of America, made headway by 24% in the industrial sector. Progress in the manufacturing segment registered a growth of 27%.

The most evident benefit of international trade are summarized below:

• International trade has reduced inequalities and facilitated growth in economy of different countries.
• Studies revealed that majority of the countries of the European Economic Community, manifested very little tendency towards convergence in income during the period 1870 through World War II.
• Due to international trade, a new trend has been observed. Countries, all over the world are making all efforts to adhere to monetary policies, which have zero inflation, thereby reducing restrictions in trade worldwide.
• After conducting research on international trade, it was found out that if a particular nation reduces its tariffs, it is enough to boost long term growth of the other economies as well. However, if there is unanimous reductions in tariffs, the growth is even faster.
• It was also observed that, majority of the countries, adopted methods of ensuring growth on a long term basis. These countries, manifested a trend, where the levels of income were also high.

For further enquiries or instruction in respect of international trade law, please contact us at stralexgroup@gmail.com.

You may also call us on +254 773 865 798/ +254 734 330 677.

Yours sincerely,

FOR: STRATEGIC LEGAL SOLUTIONS GROUP LIMITED

GLOBALEX CONSULTING GROUP

© 2012, Strategic Legal Solutions Group Limited

HISTORY OF INTERNATIONAL TRADE

In olden days, the concept of international trade was not prevalent. Instead, international trade was referred to as trading activities conducted overseas or over long distances. History of international trade shows us how trade used to take place between various nations in olden days. It gives us an insight into the evolution of the concept of international trade.

Given below is a rough outline of the history of international trade.

HISTORY OF INTERNATIONAL TRADE IN ANCIENT TIMES-IMPORTANT HAPPENINGS

The important trading activities, which took place in the ancient period can be summarized as under:

• According to Periplus Maris Erythraei, which is a Greek travel manuscript, written in the 1st century CE, there used to be extensive trade between Romans and the Indians.
• The Arabian nomads carried out long distance trading activities with the help of camels. They traded silk and spices in Far East.
• The Tyrian fleet of ships known as "Ships of Tarshish", sailed back with ivory, silver, gold and precious stones from the east.
• The Egyptians carried out extensive trading activities in the Red Sea. They imported spices from Arabia and from the "Land of Punt".
• Ptolemaic dynasty, which is a Greek dynasty, was the first to carry out trade with India, long before the Romans did.
• People belonging to the Kingdom of Qataban, cultivated and traded aromatics as well as spices. The Kingdom's economy was dependent on this trade. Spices and aromatics were exported to Abyssinia, Mediterranean and Arabia.
• Berencie and Myos Hormos became important trading ports during the 1st century BCE.
• There was an increased demand in aromatics with Indian culture being introduced in Java and Borneo. These places assume importance as reputed trading points. These were to cater to the Arab as well as Chinese markets, in the years to come.
• Pre Islamic Meccans benefited from demand of Romans for luxury articles. For this, the Pre Islamic Meccans used the Incense Route.
• Myos Hormos, Arsinoe and Berenice were three main Roman ports, where goods brought in from East Africa were set ashore.

In the above paragraphs, we also get to see some of the important trading ports during the ancient times. These trading ports served as corridors to other nations.

History of international trade in the middle ages- Important events

• The Song Dynasty created the first paper printed money. Aden, Siraf, Damietta and Alexandria were used as ports through, which the Abassids entered China and India.
• Industrial manufacturing, processing and distribution of wine, tea, salt was nationalized by Wang Anshi of China.
• Market rights as well as trading privileges were secured by Hanseatic League in England for goods in the year 1157.
• Brocade workshops as well as silk mills were supported by the Song Dynasty in Kafeing and eastern province.

HISTORY OF INTERNATIONAL TRADE IN MODERN TIMES- SOME IMPORTANT EVENTS

• Foreign trade licenses were introduced by Japan to prevent piracy and smuggling in the year 1592.
• Dutch convoys sails back in the year 1599 with products from East India. The convoy also brings in spices.(600,000 pounds).
• Dutch East India Company is established in the year 1602. The company declares bankruptcy in 1799 because of a rise in competition in free trade.
• The French constructed military forts during the eighteenth century. These forts acted as trading and communication ports for trade of fur.

HISTORY OF INTERNATIONAL TRADE IN LATER MODERN ERA

• During the reign of Napoleon III, the Free Trade Agreement(year-1860) was struck between France and Britain.
• In the year 1815, first nutmeg shipment sailed back from Europe.
• In 1868, Japanese Meiji Restoration opened its doors for industrialization by means of free trade.
• In the year 1946, the Bretton Woods System was introduced. This international economic model was introduced to stop wars and depressions.
• In 1947, as many as 23 nations give their consent to the implementation of GATT (General Agreement On Tariffs And Trade).
• Formation of Zangger Committee takes place in 1971. It was set up with a view of interpreting nuclear goods in perspective of international trade.
• International trade of nuclear goods was moderated by Nuclear Suppliers Group or NSG, which was established in the year 1974.
• NAFTA was formed on 1st January, 1994.
• On 1st January, 1995, the World Trade Organization or the WTO came into being to promote free trade between various nations.

The journey from the "Land of Punt" to the WTO, has been a long one and in each step, people have responded to situations depending on the needs of the time.

For further enquiries or instruction in respect of international trade law, please contact us at stralexgroup@gmail.com.

You may also call us on +254 773 865 798/ +254 734 330 677.

Yours sincerely,

FOR: STRATEGIC LEGAL SOLUTIONS GROUP LIMITED

GLOBALEX CONSULTING GROUP

© 2012, Strategic Legal Solutions Group Limited

MAURITIUS - DOUBLE TAX TREATIES

LAW AND PROCEDURE FOR APPLICATION FOR KENYAN PASSPORT

The Law governing application and issuance of passports in Kenya is the immigration Act. Passports are therefore issued by the Ministry of State for Immigration and Registration of Persons, currently house at Jogoo House “A”, Taifa Road, Nairobi.

APPLICATION REQUIREMENTS

Whereas Kenyans are have a right to a passport to facilitate regional and international travels, the issuance of the passports is not automatic, and the same must be applied for. The application is in a prescribed for.

Generally, the following are the requirements:

1.       Application Forms: All applicants must fill the application forms, vis-à-vis:

a)       Persons over 16 years of age Form PP1

b)       Children under 16 years of age Form PP2

2.     Documentary evidence of Kenya Citizenship: Documentary evidence of Kenya Citizenship must also be submitted i.e. Naturalisation, Registration, and Birth Certificates & ID/Card original and copies.

3.     Photographs Guidelines: Passport-size Photographs of the applicant must be submitted, and must take full face, without head-scuff or wigs. The photographs must have been taken within the last six months of the date of passport application. Photographs may be black and white or coloured and must not be mounted. The size of the photographs must 2 by 1½ inches, machine photos are not acceptable.

4.     Additional Documentation: In case of married woman, further documentary evidence of marriage e.g. Sworn Affidavit, marriage certificate must be submitted. In case of children /people under the age of 21 years of age, written Consent from Father or legal guardian is required unless one is a member of the Armed forces.

5.     Recommendation: The Application must be recommended by a citizen of Kenya such as Minister of religion, a Minister or Legal Practitioner, an established Civil Servant or Bank Official personally acquainted with the applicant, but not by immediate relatives.

6.     Other Requirements

The applicant:

a)       Must be Bona Fide Kenya citizen.

b)       Must demonstrate a genuine reason for travel, such as visiting family or friends, business, further studies or need to visit an ailing relative.

c)       Must be capable of meeting travel up-keep expenses while outside Kenya.

Please note that for students, the following additional documents are required: -

a)       Letter of admission to school or college (original and copy)

b)       Form 1-20

c)       Letter of Clearance from the Permanent Secretary, Ministry of Education.

d)      Parents/guardians affidavit in support of the passport application Travel.

e)       Kenya Citizenship-Registration Certificate for those registered citizens (original and photocopy) and a Renunciation Certificate if the applicant is born in Kenya after independence (1963) etc but only one of the parents is Kenyan.

COSTS

The following are the costs involves in passport applications.

a)       Ordinary 32-page Passport            Kshs 3,040/=

b)       Ordinary 48-page Passport            Kshs 4,540/=

c)       Ordinary 64-page Passport            Kshs 6,040/=

d)      Diplomatic 48-page Passport        Kshs 6,040/=

e)       East African Passport                      Kshs 940/=

f)        Temporary permit                            Kshs 300/=

g)       Application Forms is                       Kshs 40/=

The handling charges for undertaking the application process for the applicant is however negotiable. The law allows applicants to make the applications on their own. The use of a consultant however is desirable as often the consultant understands the process very well and can well in advance anticipate any challenges, mitigate them on time and therefore guarantee an expedited turnaround time for each application.

As such, we remain willing and able to act for our clients in passport applications processes, including passport renewal services. Please contact us at stralexgroup@gmail.com for any question regarding passport applications in Kenya. You may also call us on + 254 773 865 798/ +254 715 310 677.

Yours in service,

Corporate Law & Business Services Consulting – a participating consultancy in the SLS Group of consultancies focusing on corporate law applications, governance and compliance requirements as well as services in facilitation of business.