Investing in ships - free trade

in #mba7 years ago

A number important aspects of ships determine their worth and viability as investments.

Depending on investor preference, some factors may outweigh others. Such factors then have the potential to considerably sway the investment decision to- or away from certain types of ships.

FREE TRADE AGREEMENTS


Free Trade Agreements provide an extremely favourable environment for trade.

Nations that would otherwise not be able to have such trade relationships can benefit tremendously from this.

As the saying goes, “Trade is Civilization“.

When you look at it closely, you can see what is really going on. It is not just that trade causes more prosperity. The reverse is also true.

The level of trade is both a cause and a result of countries that may be considered more developed.

TRADE BARRIERS


As can be expected, when lots of trade barriers are cancelled, it has a major impact on the flow of goods around the world.

But it affects a certain type of product more than others. A good example would be the reduction in trade barriers affecting the USA during the 1990's.

Semi-manufactured or manufactured products were more affected. The effect on raw material trade was small.

The flow of raw materials around the world are based on patterns that are very, very old. These patterns are so embedded in the global economy, that they don't change easily.

SHIPPING CONFERENCES


Besides Free Trade Agreements, Shipping Conferences have traditionally played an important role in terms of information sharing.

But it affects a certain type of product more than others. A good example would be the reduction in trade barriers affecting the USA during the 1990's.

People who are involved in shipping make decisions based on these conferences too.

Shipping companies used to convene on a regular basis. Meetings would include discussions regarding strategies and developments in the shipping markets.

How could developments be exploited to increase profit and sustainability?

Recently shipping conferences have been banned in Europe! So this has created a fundamentally different landscape as far as information-sharing is concerned.

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