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Globalization is the Process of Interaction and Integration of Different Nations

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Introduction

Globalization
Globalization, as defined by The Levin Institute of The State University of New York, “is a process of interaction and integration among the people, companies, and governments of different nations.”
Globalization is a centuries old practice, affecting production as well as consumption, and is driven by investment and trade and supported by information technology. Over time, globalization has also become a political issue. Today many governments have adopted free-market economic systems, negotiated for reductions in trade barriers, and have established world-wide agreements to promote trade in goods, services, and investment (Levin Institute). In recent history, globalization has expanded rapidly due to …show more content…

In a competitive market no single producer and no single consumer has control over how the market operates. No single producer or consumer can determine the price of goods and services nor how much will be exchanged. The world's cotton market is one such interdependent competitive market.
World’s total cotton production
As reported by the United States Department of Agriculture as shown in Table 1 in Appendix A, the world's total cotton production was 126.6 million four-hundred eighty pound bales from August 2011 to August 2012. The world's total production dropped to 123.1 million bales in August 2012 to August 2013. The three world's largest cotton producing countries in 2011/2012 were China, India, and the United States producing 34 million, 29 million, and 15.5 million pound bales, respectively. In 2012/2013, China's production increased to 35 million bales, India's production decreased to 28.5 million bales, and the United States' production increased to 17.3 million bales. These three countries produce approximately 65% of the world's total cotton supply.
World’s total cotton consumption
The world's total cotton consumption in 2011/2012 was 103 million bales and rose to 107.1 million in 2012/2013. The world's largest cotton consuming countries in 2011/2012 were China, India, and Pakistan consuming 38 million, 19.7 million, and 10 million bales, respectively. In 2012/2013, China's consumption decreased to 36 million bales,

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