What's Happening in Hungary?

http://mtva.hu/images/download/hungary_matters/2014/afternoon/hm0404pm.pdf
Here is a link to the newsletter where I got my information from.

In the newsletter, one of the last items says that Hungary has received a license from China to export select foods to China. This will open up the Eastern market to Hungary, which is one of their economic goals. One of the main reasons China granted them this license is because Hungarian food is of good quality, mostly because they are free of GMO's (Genetically Modified).

This relates directly to what we discussed in class about markets in general. Markets allow us to advance as a society. Being able to trade with other countries allows us to specialize more because we do not need to focus our efforts on making certain goods or a large amount of certain goods. We can trade with our partners that may be more efficient in producing some goods, while we are more efficient at producing others. We both benefit from trade because we end up with more of both goods simply because we took advantage of our time and resources. This is the power of markets.

This newly formed relationship between Hungary and China may have formed for multiple reasons. I think a logical reason why this trade began was because China did not want to buy food with GMO's in them. Since Hungary has the quality of food that China is looking for they reached out to them to reach an agreement. Hungary said that they are looking to tap into the Eastern market. Developing a relationship with China is a start. Once they prove that they are worthwhile partner, perhaps other countries will follow in China's footsteps and open trade with Hungary as well. Something that may benefit both countries is opening up the trade to more than simply food. Perhaps there are other goods that they can trade to benefit from this relationship.