How Does Global Trade Make Us More Interdependent? Global

Globalisation is expressed in transcontinental flows and networks of activity, interaction and power between countries, irrespective of geographic distance. It establishes and maintains economic, political and socio-cultural relations. This interaction helps economies through growth in international trade, investment and capital flows. Some factors that have acted as the driving force of globalisation include technological innovation as it had made transport and communication around the world easier, capitalism and trade have also played an important role in encouraging globalisation. Trade

There is no doubt that increasing in international trade is supporting the economic growth across the world, raising incomes and creating jobs. However, international trade can also some create economic obstacles, such as the international context and the market policy and regulations of each country, and consequently it can be said that the effects would have positive and negative sides, and it is useful to mention all of them and to take them into consideration.

Trading is very important economic factor. Trade between different countries depends upon different factors. There are some factors due to which bilateral trade between two states is enhanced. On contrary, there are some factors which restrict or reduce the trade between two countries (Meyer, 2011). Factors which enhance trade include different cultural, political, geographic and economic aspects which are common between the 2 countries involved in bilateral trade with each other. While trade is reduced or restricted, if two countries are completely different culturally, politically, geographically and economically (Siegel, 2011). For example, trade between two countries, having common boarder, currency, per capita income et cetera, will be lot more high than those countries which do not share these factors common with each

Weeks, R. (2006). International trade issues. New York: Nova Science Publishers, Inc..World Bank.org. (November, 2011). Globalization and international trade (Chapter12, pp.

The world today is as interconnected and interdependent as never before mainly due to rapid globalization. The process of globalization has long began with human migration and trading of goods (Chanda). More recently, the world has experienced three rapid globalization periods. First, from the Industrial Revolution in Europe that opened up new resourceful lands in many other countries which encouraged the flow of people and foreign investments for productions (Salvatore and Dominick, page 2). The second phase of rapid increase in international trade happened during post WWII when heavy trade protections during the depression period were dismantled (Salvatore and Dominick, page 3). Present, globalization is at another peak development as

Global economic interdependence has led to on average longer, healthier more prosperous lives for humans not to mention a remarkable rise in the overall human population. In the west the rise of globalization has led to the rise of a service economy. In the US and the EU most people now work not in agriculture or manufacturing but in the service sector. This can be in anything from information technology to entertainment. and that switch has really changed our psychology, especially the psychology of the upper classes living in the industrialized world. To quote Fredrick Jameson ‘we are so far removed from the realities of production that we inhabit an artificial dream world.’ Put it in these terms if you had to kill a cow every time you vised MacDonald’s you would perhaps eat fewer Burgers. Many social scientists of the now have also noted another change in our psychology, that globalization has led to a celebration of individualism particularly in the wake of the failures of the Marxists collective utopias in the early 90’s. The generation that lived through the great depression and World War 2 saw large scale collective responses to both those crises and they were both responses that limed freedom. The military draft for instance that limed your freedom, well you know not to be a soldier or the collectivization of health insurances in most of the post war west, which limited you freedom… to go bankrupt from healthcare coast or also government programs like social

“Globalization has produced a new of level of interdependence among us. The economy and multinational supply chains do not abide by political boundaries. A computer ordered in Brazil is designed in California and assembled in several other countries. Economic integration was the first strong evidence of a new era” – Eduardo Paes. It can be seen now that globalization is something that cannot be stopped. This process of international integration has come as a result of an interchange of world views, ideas, product, and other aspects of different cultures. The rapid development of transportation and telecommunication and furthermore the internet, has boosted globalization greatly and as a result a greater interdependence of economic and cultural activities. Interdependence is one the main factors of the economic welfare of the countries. Both regional and international organizations preach this idea among their member states and this is one of their main objectives. Nevertheless regional and international organizations have different geographical areas of operations and different laws which at some cases might result into conflict with each other. Both the European Union and NATO, in which I’ll focus my essay on, show proof that there might be cases where the UN’s and international law’s influence is nullified. I believe that regional organizations should be in a continuous cooperation with the international organizations, but it should be regional organizations as the

     International trade has been in existence throughout history and has an economic impact on the participating countries. Trade in most countries has a share of the Gross Domestic Product (GDP) and helps to boost the

Trade between nations has existed for centuries; the main difference is that today it occurs at a greater speed, higher volume, more complexity and geographic reach as a result of the consequent intensification of globalisation and the development of transport and communications (Taylor, 2002). The increase in international trade has brought many benefits such as economic growth, increasing consumption capacity and the reduction of poverty, all as a result of globalisation. However, globalisation does not benefit all countries in the same way. Developing countries do not always have well prepared industries for international competition, which can cause more instability. In addition, some jobs are lost and child labour is often used by countries to reduce production costs. Nevertheless, this essay will attempt to demonstrate that the increasing globalisation of world trade has a positive impact on countries, encouraging the growth and poverty reduction through international trade. Furthermore, it will be shown that even with the loss of some jobs arising from international competition; in general, globalisation through trade creates more demand for employment, generating income growth in the long term, allowing access to more products and raising the standards of living. Thus, the impacts of globalisation are mainly positives.

After World War II, a new idea of economic trade was introduced. To help rebuild infrastructure and provide jobs after a devastating war, the idea of global trade and interdependence arose. Many economists and politicians at the time argued that this would also reduce the likelihood of war as countries would be forced to work with each other to provide for their citizens. To promote this idea of global interdependence, the World Bank was set up and the Bretton Woods agreement was made to allow and encourage world trade in a way that was beneficial to all. Since the end of World War II the world, the idea of global trade has become common place and has provided many benefits. Some of these benefits include lifting million out of poverty in Asia, lower product prices, increased consumer negotiating power, and the reduction of infectious disease related deaths.

Many nations are not able to source their own materials to create products that they need to make advancements in all aspects of the economy. International trade allows countries to ex-pand markets for both goods and services that would not typically be available (Heakal, 2015). As a result, an individual is able to go into a store and purchase items that are not harvested from their host nation. For example, if someone wants to go to the store and buy Brazilian coffee they are able to do that. How the coffee made it from one country to another is by international trade. With this, there are countries that are able to advance their economy by completing trade deals with other nations. International trade is able to open up different markets for companies.

The writers discuss that policy was too fixated on safeguarding that inflation stayed stable and low. Even the relationship between output and inflation is understood quite poorly, especially at low rates of inflation. Additionally the authors make a plea for not thinking of the policy rate as the only tool of monetary policy, even in more normal times.

International trade has significantly increased with the globalisation of the world economy. The rapid growth in the world economy and the modernisation of the economy has led significant cross border exchange of goods, services and capital. Between 2000 and 2014, the export of goods and services exports grew by an annual average of 7.09% while imports of goods and services grew by an annual average of 7.21%. This growth is higher than the average GDP growth over the same time which averaged 3.99% annually. In Kenya, exports and imports grew by an annual average of 4.49% and 8.26% respectively between 2000 and 2014. This compares unfavourably with the annual average GDP growth rate of 4.39% over the same time .

The international trade of goods across the world accounts for approximately 60% of the world Gross Domestic Product (The World Bank, 2014). A great proportion of goods transactions occur every second. The primary question is whether international trade benefits a country as an entirety, and, if so, why would a country implement protective trade policies to restrict particular exports? To address this question, this essay aims to explore the impact of trade on various economic stakeholders, including consumers, producers, labour and government and, furthermore, will compare models and theories with reality to ascertain the true winner/ loser in the international trade market.

According to Business Dictionary, global interdependence refers to, “Mutual dependence at a global level” (Business). In other words, it’s the connection that all countries, that do business together, share. Here in the United States, we are dependent on China for a lot of goods that are outsourced there. Furthermore, China may be dependent on India for some raw materials. This concept is basically the importing and exporting connections that each country shares with each other.