Turkmenistan’s international trade
When taking into consideration of Turkmenistan’s international trade for the last few decades, it has sought to improve its sovereignty by extensively getting only bilateral trade agreements. It is advocated that the country's prospective prosperity is dependent based on its actual ability to facilitate peace and stability in a probably volatile region. Based on that aspect, its international relations in relation to the essence of trade are articulated within previous Soviet territories that come from the central Asia and Russia. These intricate its assumption while focusing to cultivate emerging relations countries such as America, Asia and Europe, and America. Because transportation and export have been considered to have problems that have resulted into complications for Turkmenistan's economy, particularly for the international trade and its entity of energy resources, creating new markets and channels are of crucial significance. However, foreign investors in that context are similarly, hesitant to work in Turkmenistan since the socioeconomic infrastructure has extensively gone down over the last few decades and at the same time laws required to protect their investments are at some point violated by presidential decree.
Some theories in relation to the international trade have explained several assumptions in regard to that. Some scholars who have researched over the same issues have given diverse arguments which equally give a preview on that notion. For instance, Mercantilism asserts the issues related to the economy of a state and based on its views, it explains that it is the intrusion of the state’s best interest to facilitate and maintain the trade surplus in connection to export compared to the general imports. This aspect advocates that Turkmenistan’s international trade should focus on this perception and the theory asserts that the government has to focus on the intervention in order to attain effective surplus in the balance of trade (Markusen, 2005, p.143). This intrusion focuses on the views in relation to the trade as a Zero-sum game and therefore Turkmenistan focuses in this perception as a state to gain in concern of the other to articulate the imbalance.
Smith’s theory of absolute advantage is also one of the most significant theories that advocates on issues related to the international trade. In the Turkmenistan, this theory can articulate in the production of a product which is seen to be efficient when compared to other countries. Thus, this theory asserts that the essence of absolute advantage in relation to production of a country should mainly specialize on issues related with production of goods which makes its economy effective. The goods produced by the countries should be slightly relevant from the other countries in order to make them impulsive. Similarly, the theory assumes that those countries that have diverse units of resources that can be used in the production of relevant goods can be linked in a way to formulate trade links that are effective. Some of the units take several resources to make several tons which sell in the international trade (Kerr, Gaisford & Estey Centre for Law and Economics in International Trade, 2007, p.132).
Turkmenistan's trade with other several states hovered around 50 percent in the last seven years. This assumption was defined to be a slight decrease when taking into comparison with the previous years. When making assumptions based on the Smith’s theory, Turkmenistan is considered successful due to the efforts enacted to reduce its dependency on other countries such as Russia. Similarly, its export-import income for the last few years has gone significantly since independence. When taking into comparison the export trade in 1992 indicates that it was approximately US$1.5 billion and in the year 1997 it was approximated to be US$751 million. Therefore, exports have been assessed to increase somewhat since that period; however the low volume shows the state's ongoing struggle to increase the sale of its entity natural gas. On the other hand, imports increased extensively from 1992 approximated US$446 million, increasing in the year 1993 to US$2.1 billion, however 1997 it reduced to US$1.2 billion. Since the essence of trade that incorporates main energy resources, this presumes the intrusion that is much better than manufactured goods. Turkmenistan has basically sustained affirmative trade balance; however it has oscillated extensively from 1992. Turkmenistan is the only former Soviet republic to have a constantly positive trade balance because of the fall down of the Soviet Union.
It is evident that Russia maintains to be the most significant partner when it comes to Turkmenistan's international trade. Thus, when taking into consideration Smith’s theory in relation to the international trade, Russia depicts about 50 percent of the whole trade when taking into consideration of the Commonwealth of Independent States, chiefly within the natural resources. This notion, therefore, emerges to be unlikely to abandoning the essence of control articulated in the future since it instruction the transportation grid created over the Soviet era. For instance, taking into consideration oil and gas, and therefore, the pipelines go through Russia and this assumption has frequently punitively been keeping up the amount of central Asian merchandises allowed to cross its territory (Aswathappa, 2010, p.162).
The underlying aspects in regard to the theory have the belief which intricate the essence of wealth in the world that has a relatively static notion in the world. Secondly, the belief in which Turkmenistan’s belief on its wealth could be considered best based on the precious in regard to obtaining favorable balance advocated from the foreign trade. The value in which the state exercises a dominant intrusion in helping and directing the entity of both national and international economies to the ultimate marks its development. On the other hand, Turkmenistan has been involved in the natural gas export with other states such as Iran, with the perception of its southern state to be the rational conveyor of Turkmenistan resources. However, the United States does not correspond with the plans, and Central Asian originators have extensively criticized Niyazov's effort to facilitate this relationship. When taking into consideration the preview from the theorists, Turkmenistan and Iran agreed on 25-year treaty with the aim of providing 28 billion of natural gas. Thus, the delivery was assumption of delivery that will articulate through a pipeline, built together built however chiefly financed by Iran (Gandolfo, 2004, p.134).
The current position in relation to the use of the extended form of Porter's Diamond of National Competitiveness has raised concerns of. This intrusion shows a slight decrease compared to the previous as it advocates the essence of its international trade. Because transportation and export have been considered to have problems that have resulted into complications for Turkmenistan's economy, particularly for the international trade and its entity of energy resources, creating new markets and channels are of crucial significance.
References
Aswathappa, K. (2010). International business. New Delhi, Tata McGraw Hill Education.
Gandolfo, G. (2004). International economics 1 1. Berlin u.a, Springer.
Kerr, W. A., Gaisford, J. D., & Estey Centre for Law and Economics in International Trade. (2007). Handbook on international trade policy. Cheltenham, UK: Edward Elgar.
Markusen, J. R. (2005). International trade: theory and evidence. [S.l.], Mcgraw Hill.
