Global Business and Trade

Globalization has impacted almost every part of the modern world; it can be characterized by economic, political, and cultural integration. Economic globalization refers to the increasing interdependence of world economies as a result of the growing scale of cross-border trade of commodities and services, a flow of international capital and wide and rapid spread of technologies (Shangquan,

The phenomenon of globalization began in a primitive form when humans first settled into different areas of the world; however, it has shown a rather steady and rapid progress in the recent times and has become an international dynamic which, due to technological advancements, has increased in speed and scale, so that countries in all five continents have been affected and engaged.

Globalization can be defined as the process of social, political, economic, cultural and technological integration among countries around the world. However, globalization is frequently confused with internationalization. Internationalization increases the importance of international trade, international relations, treaties and alliance between nations (Herman E Daly, 1999). Internationalization works by penetrating another country and adapting to the market independently and collaborating with the local government (Kanter, 1995). Adam Smith and David Richardo explained that in internationalization, the factor of production such as capital and labour are typically less mobile

Globalization is the process by which the world is interconnected through technology and powerful infrastructure for the purpose of communicating and managing resources. Globalization seems to talk about several vibrant phenomena(s) which ensure two major components.

Given that the world is interdependent, economic progress of a country depends upon its relations with other nations (Shukla, 2009). Through strong international trade, economies have flourished and gained power to control and steer the global economy (Economy Watch, 2010). Over the years, it has offered a wide range of benefits to various economies across the globe. The rising importance of international trade has been fueled by contemporary production techniques, innovative transportation systems, transnational organizations, outsourcing activities and expeditious industrialization (Economy Watch, 2010).

Globalization101 describes globalization as a “process of interaction and integration” of different commercial and governmental entities “driven by international trade and investment and aided by information technology”. The Globalization process itself, is not restricted to trade issues alone, but the impacts of the exchange of goods and services on, the environment, culture, political systems, and economic development. (What is globalization, globalisation101)

Though the volume of globalization is in increasing pace, the value to globalization hasn't been recorded high. If we look at the data, countries trade is mostly bilateral with the nearby country. The geography and distance among countries still matter when it comes to international trade.

Globalization refers to a shift towards a more integrated and interdependent world economy. (Hill & Jain, 2014, p.5). International trade has changed its course due to the enhancements and innovations of globalization. To meet the competitive world many countries, developing as well as developed form agreements with each other to remain competitive and strive to higher levels.

Globalization is a concept that can be difficult to fully comprehend, because it is influenced by the theoretical underpinnings of governance, economics, politics, and even culture. Stief (2014) describes globalization as, “the process of increased interconnectedness among countries most notably in the areas of economics, politics, and culture” (para. 2). As technology bridges the knowledge gap and creates avenues, venues, and networks to connect people, processes, and businesses, the level of general awareness around the world rises as well. As awareness increases, so does the ability for connectivity, which further transmits data, information, and eventually enables the movement of goods and services. The increased movement of information, goods, services, and of course money is managed through a loose, yet powerful, system of international brokers who superficially control access through complex business practices that are fundamentally influenced by market demand; that is, the act of buying and selling. As countries connect with one another, they encourage market expansion as the demand for goods and services grows and the cost of transportation is ameliorated by an increase in technology and growing transit routes. Globalization, therefore, depends on the interconnected systems and subsystems of business practices that are affected by regional and national economic demands, local political controls and processes, and cultural barriers. Globalization is generally

Globalization has made a lasting impact in the world, bringing people and goods closer than ever before. Beneficially the increase of international trade has inspired many economies, creating jobs, increasing salaries, improving lives, and reducing prices. The adversities of global trade are that it can affect numerous economies, government policies and civil movements. Global trade happens very quickly with the advances in technology. Things that happen throughout the world can create a ripple effect globally, both for the good and bad. Things that once affected a local economy have now expanded to

Trade is increasingly global in scope today. There are several reasons for this. One significant reason is technological—because of improved transportation and communication opportunities today, trade is now more practical. Thus, consumers and businesses now have access to the very best products from many different countries. Increasingly

International trade has evolved and expanded significantly in the last 50 years. The expansion in trade has been driven by a reduction in trade barriers and the development of new technology. This has reduced the cost of communication and transport. Outward-looking policies have replaced protectionism policies and have led to the increased openness in markets and free trade. This is known as globalisation and has led to an increase in linkages and the integration of national economies which expanded into international markets. Some say that the term globalization suggests making use of business opportunities, improving trade efficiency, rapid growth and innovation as well as the transfer of such knowledge to developing countries. Others believe however that globalization raises problems such as increased inequality both between and within countries. (Todaro 2010).

Industrialization, advanced transportation, globalization, multinational corporations, and outsourcing are all having a major impact on the international trade system. Increasing international trade is crucial to the continuance of globalization. Without international trade, nations would be limited to the goods and services produced within their own borders.

The concept of globalization has become a prevalent phenomenon in the past two decades because of the changes it has brought and the adoption of its strategies by multinational corporations or companies. The economic changes of globalization include the strengthening of economic inter-dependence, internationalization of production, and enhanced mobility of transnational corporations. On the other hand, trade liberalization, privatization, and deregulation are the ideological changes emanating from this concept.

This paper defines, and examines the role and importance of international trade. As many of us are aware, international relations between nations mean many things. International trade plays a major role in establishing those relationships. International trade can be described as the act of exchanging goods and services to and with other countries. It has a vast economic and political impact on the decisions that the government chooses to engross themselves in for the improvement of not just the country, but also its citizens. As the 1998 R. Kelly song says, “Money makes the world go round”. That is precisely what international trade is about. This paper not only goes into great detail about the meaning of international trade, but also how