1. Free Trade is still in debate due to the questionable benefit for each side.

This debate
doesnt try to limit the effect of free trade to developing or third world country .It will however
argue that poor countries will suffer in comparison to their trading partners due to the unfairness
and expensive nature of a free trade agreements. I agree that Free Trade makes rich countries
richer and poor countries poorer.
Free trade is harmful for poor countries and useful for rich countries in the following reasons:
(1) Competition under free trade is unfair and unhealthy. Poor countries find it difficult to
compete with the economically advanced countries.
(2) Under free trade, gains of trade are unequally distributed depending upon the level of
development of different countries. The terms of trade are favorable for the developed countries,
and unfavorable for the poor countries.
(3) Poor countries generally experience unfavorable balance of payments. The problem of
unfavorable balance of payments cannot be solved under free trade policy.
(4) Poor countries cannot protect their infant industries under the policy of free trade and
strategic industries can be threatened.
(5) Free trade may endanger economic and political independence of the backward nations.
Many economists agree that Free Trade makes rich countries richer and poor countries poorer
and I also agree that. However promising the benefit of Free Trade the richer country claims, the
reality shows that inherently Free Trade is never a fair ground to compete and therefore should be
abandoned. I think that poor countries should put restrictions on and keep close control of Free
Trade.
2. There are many methods of payment in international trade but I will focus on an open
account. An open account transaction is a sale where the goods are shipped and delivered before
payment is due, which is usually in 30 to 90 days. Obviously, this option has both advantages and
disadvantages in international trade.
To begin, an open account has many advantages for the importer and the exporter. Unsecured
Open Account terms allows the importer to make payments at some specific date in the future and
without the buyer issuing any negotiable instrument evidencing his legal commitment to pay at the
appointed time. Also, it may help the exporters win customers in competitive markets.

Nevertheless, there are many disadvantages of open account terms. Under an open account
payment method, title to the goods usually passes from the exporters to the importers prior to
payment and subjects the exporters to risk of default by the importers. Furthermore, there may be
a time delay in payment, depending on how quickly documents are exchanged between the
exporter and the importer. This payment presents the exporter with the highest degree of payment
risk.
With that advantages and disadvantages of open account, the exporters should thoroughly
examine the political, economic, and commercial risks as well as cultural influences to ensure that
payment will be received in full and on time. An open account should be employed only between
the importers and the exporters who have a long-term relationship involving a great level of
mutual trust.
3. There are many methods of entering new markets or increasing market share but I will
focus on M&A. M&A are general terms that refer to the consolidation of companies or assets.
According to collated research and a recent Harvard Business Review report, the failure rate of
M&A sits between 70 percent and 90 percent. The main reasons of this failure are cultural
integration issues and lack of clarity and execution of the integration process.
To begin, the challenges inherent in cultural integration issues are quite evident in global
M&A deals. Making appropriate, timely decisions and operating effectively becomes extremely
difficult when merging companies with different cultures. This in turn can undermine the potential
value created through the new integrated company. A proper strategy should be devised either to
go for hard-decision forceful integration setting aside cultural differences, or allowing the
regional/local businesses run their respective units, with clear targets and strategy on profit
making.
In addition, there is lack of clarity and execution of the integration process. A major challenge
for any M&A deal is the post-merger integration. A careful appraisal can help to identified key
employees, crucial projects and products, sensitive processes and matters, impacting bottlenecks,
etc. Using these identified critical areas, efficient processes for clear integration should be
designed, aided by consulting, automation or even outsourcing options being fully explored.
In conclusion, M&A may be failed with integration difficulties in culture and lack of clarity
and execution of the integration process. This often means a major loss in value for shareholders
and may leads to bankruptcy.