A Brief Summary of Romania's Economy

 

 

 

 

 

GDP-- $ 247,100,000,000.

This entry gives the gross domestic product (GDP) or value of all final goods and services produced within a nation in a given year.

Romania is ranked 43 in the world with this value.

 

Major Trading Partners.

Italy, Germany, and France are the major trading partners that Romania deals with while Hungary, Russia, and Turkey are trading partners as well but at a lower percentage.

 

Exports and Imports.

E= $40.32 billion

I= $64.54 billion

 

Major Exports include:

Machinery and equipment, textiles and footwear, metals and metal products, minerals and fuels, chemicals, agricultural products.

 

Major Imports include:

Machinery and equipment, fuels and minerals, chemicals, textile and products, metals, agricultural products.

 

Balance of Payments.

Current Account Balance: -20,950-in millions. Romania is consuming more than they can afford. Therefore it is adding to the debt the country already has, making the problem worse.

 

Cost of Protection.

No tariffs between members and a united tariff barrier to the rest of the world NTB.

Tariff Rate--1.077, Language Cost--1.07, Different Currency--1.14, Information Cost--1.06, Security Cost--1.03

Adding these numbers together will give the boarder costs of exporting which is equivalent to 43 percent.

 

Right Decisions?

Romania is a member of the WTO since Jan. 1 1995 and also a member state of the European Union.By Romania’s participation in these two organizations it has no tariffs between members and a united tariff barrier to the rest of the world. This is beneficial to Romania because their main trading partners are members as well. Having the same tariff barriers for exporting and importing is very important for a countries expansion. I don’t think Romania can get away with changing their tariffs rate without the entire WTO getting involved. The boarder costs for Romania’s exports are around 43 percent, which is high. This could be one reason why exports are relatively low compared to other countries. Perhaps figuring out how to minimize cost, which is very difficult to manage, they could lower costs in and raise exports.