International Trade Has Dramatically Increased Globalization Of The World Economy

In this chapter, talks about Globalization and Trade. Wheelan starts by using the example of a magical machine that turns corn into stereo equipment. “Imagine a machine that can convert corn into a stereo equipment”. He says that no matter where in the world you look, trade is a machine that can turn anything into anything else. In trading we are practically taking what we produce and turning it into what we can’t or do not produce. The best part of the trade machine is that it allows countries to specialize in producing just one good and then taking that one good and turning it into another good. Since in the trade machine you just need one thing to get whatever you want, you basically take whatever you are better at and focus only on producing that in order to trade it with different people that can offer you what you lack. This is the heart of trade, specialization.

The economy is based of both producers and consumers, but the customers are the ones that ensure the success of each company. More than half of the world’s population lives in a portion of Southeast Asia (Schuman). The population of Southern Asia is affecting the economy of other countries around the world because so many consumers are located in one condensed area. The Countries of China, India, and Japan consume many American goods that help both countries’ economy grow from recovery of the stock market crash. However, the Asian countries seem to be benefiting more from this globalization of the economy than America.

How does global trade make us more interdependent? Global trade makes us more interdependent by the impacts of finance, trade, investment, technology and migration. Also, economic, social and environmental impacts. They affect the formulation and implementation of policies at the national, regional and global levels. Among significant impacts is the reduction in the degree of national autonomy in policymaking and the resulting need to better harmonize national policy formulation with international obligations, commitments and compulsions.

Globalization has influenced the way our world works today. This is the process of international business. Many of the items we are using at this very moment are imports, products produced in another country. Many businesses today rely on exports, products produced in their home country and shipped to other nations. Every country relies on imports and exports. Wether a firm is expanding to another nation or uses imported goods, international business is always involved and will affect the business model. Factors that will affect and alter the international marketplace such as, trade agreements and alliances, exchange rates, and foreign competition.

After reading the first half of the text, I learned about the topics of globalization, economic development, international financial markets, and more. International business is relevant in almost all news articles today. Although I have learned a large measure of information from each chapter, I was mostly interested in chapter five’s topic of international trade which discussed how countries sell, purchase, or exchange goods across national boarders.

International trade has been a staple of the world economy even before sailors ventured out into the ocean. Presenting fantastic articles of cloth, precious minerals, exotic art, strange foods and other amazing merchantable items for sale at markets abroad was a merchant's gold mine. Even brought him and his family fame and fortunes. Today the world’s economy depends on international trade.

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.

The global economy needs free trade. Countries need free trade. Trade with other countries occurs at some level in every country globally. There may be some indigenous tribes within some countries that can lay the claim that they are self-sufficient, however, there is not a single country that can say the same. Proponents of an open trading system contend that international trade results in higher levels of consumption and investment, lower prices of commodities, and a wider range of product choices for consumers (Carbaugh, 2009, p26). Free trade is necessary. How do countries decide what to import and what to export?

I am going to write about international trade and how it affects the world around us. Trade especially internationally is a big part of our everyday life. Most of the items we use daily were produced or manufactured in foreign countries and then was traded or sold to the United States. There are many different sides to whether international trade is a good thing or a bad thing. In my opinion international trade has benefits that are stronger that its arguments against it , but I can see where people are decisive about the situation. I’m going to show reasons for both sides and how they affect my family and the people around me.

The globalization of the marketplace has brought about costs and benefits for all countries and industries. A main benefit of globalization for producers, like the those of us in the manufacturing industry is access to more customers however, competition also increases which decreases the potential for sales. Economic integrations are a part of global business that look to increase the efficiency of resources. Economic integrations and trading blocs are instituted in order to remove barriers to trade. The idea is that by removing barriers each individual economy will be able to utilize their own resources and those of others with more with more efficiency (Hill, 2013, p. 256). The result is that a common

Considering as one of prominent aspects of the globalization process, free international trade has over 100 years in the development history (Lawal 2006; Ocampo & Martin 2003). At the first stage, free trade was happened within the North and South America countries, then together with the development of the world economy, trade liberalization has expanded to almost areas of the world (Ocampo & Martin 2003). The most expansive and extensive period of trade liberalization is from the second half of the twentieth century to present. In this period, trade liberalization, with support from innovations in transportations and information technologies, is characterized by the rapid expansion of trans-boundary free trade and international investment among almost developed and developing (Ocampo & Martin 2003).

Advanced transportation, industrialization, globalization, multinational corporations as well as outsourcing all has major impacts on the international trade and its increase is crucial for continued of globalization (Brown Consultancy Services, 2012).Without the existence of international trade then it would mean that many countries would have limited types of goods and services within the borders of their countries.

Increases in World Trade Trade is where people exchange products, either directly through a barrier or indirectly through the medium of money, in hope of achieving mutual advantage (Comparative advantage which in turn leads to opportunity cost) Trade therefore allows a country to consume beyond its PPF. The greater the gradient of it’s trading line,the greater the gains from trade to the countries concerned. Another way to emphasize the significance of trade is to show the welfare gain of going from no trade to free trade. [IMAGE]

Globalization has become the new term for the international economy, which makes the nations have become more reliant through the flow of services, goods, and financial resources since 1970s (Gereffi et al., 2001). The term “globalization” was not created until the second half of twentieth century, it has a longer history. The word “globe” originated from the fifteenth century etymologically, which is derived from the Latin word “globus” and started to indicate an illustration of the earth hundred years ago (Smelser and Baltes, 2001). The word “global” arrived in the late seventeenth century and began to entitle “world scale” term in the late nineteenth century, also to its earlier meaning

The rise of international trade has led to the erosion of physical barriers as it has given way to instruments such as globalization. As a result of increase cooperation amongst trading partners has been made possible through the rising amount of trade agreements. For example, bilateral trade agreements have grown considerably in popularity as, most of present day countries have entered into at least a bilateral or plurilateral trade agreements if not both. The lack of a bilateral trade agreement between the United States and Brazil, the two largest economies in the western hemisphere, derives from personal motivations, political setting and relations, as well as the overall economic development of each country. Literature on trade agreements, not specifically on the relation between those two countries, can be divided into three schools of thoughts.