International Trade Operations group project Essay

International Trade Operations group project - Essay Example The United States (U.S) is one of the countries that invest mostly in large scale production of dairy products and is in top ten in the production of dairy milk worldwide. Most of the dairy products in U.S. are exported to other countries, one of them being Egypt. Indeed, Egypt’s relations with the U.S in terms of trade has been very good (Kotschwar & Schott, 2010), and this is evidenced by the fact that Egypt is one of the largest importers of agricultural products including milk and dairy products from the US. This memo will discuss the level of development and economic status of Egypt, fiscal and monetary conditions, imports market status and the general willingness of the country to import Content Cow's products from the US. Level of Egypt Economic Development In Egypt, the ministry of international cooperation and the ministry of economic development are the ones mandated to take control of economic development. In addition, because Egypt is situated around Nile Valley, i ts economic and gross domestic product (GDP) growth rate is always very high. The only problem in Egypt is that, although the economy is very good most of its citizen still live in poor conditions due to political instability. There has been reduction in government revenue in Egypt in the recent past due to slow growth of economy propagated by political problems. Because of this slow growth rate of economy in Egypt, a reform plan was made to stabilize the economy; this was to include free market economy (Knaus, 2009). To begin with, social policies and proper procedures were adopted and put into action to promote economic growth in Egypt. Again, checks and balances were made on demand for money and savings procedures, including developing ands regulating prices of products, and privatization policies of underperforming government institutions. Lastly, the Egyptian government made reforms monetary policies related to local and international trade in order to encourage investment. The introduction of these reforms in Egypt led to economic development, and this can be evidenced by the continued economic growth rate in the recent years. Indeed, the recovery and growth of the economy has made Egypt to enjoys significant international trade with many countries including U.S (Kotschwar & Schott, 2010). This also boosted Egypt’s competitive international energy prices and agricultural products prices. This market-oriented idea, reforms and policies strengthened Egypt economy, albeit under fragile political climate. However, like other African countries, a large population in Egypt is still living in poverty coupled with insecurity, unemployment, and underemployment. Again, there are always heightened protests in Egypt due to bad leadership, corruption cases, lack of political freedom, and poor living standards. This political unrest has been frequent in Egypt and cases of the youth forcing the president to step down was seen in 2011 where president Hosni Mubara k was overthrown from government due poor economic policies as well as lack of political stability and peace in Egypt (Aggour, 2013). In addition, it is important that the Egyptian government should be involved in more economic development and invest more in its citizens, thus enhancing stabilization of the government. Again, political unrest has scarred investors in Egypt; also, poor market and economic growth has placed the