Introduction Of The Cross Border Shopping

A process known as globalisation links different countries around the world together through different ways such as trade, investment, migration, internet, social media etc. Global trading is a major aspect of globalisation where different countries import and export goods and services with other countries. Globalisation has significantly changed over the past 30 years. Economies of scale has led to an increase in the production of goods, thus, created the need for expansion of markets beyond domestic boundaries. In addition to merchandise, various types of services are rendered to customers globally. This includes IT support, tourism, financial services etc. Globalisation has led to an upsurge in trade, multinational corporations, greater dependence on global economy, and easier movement of capital, goods and services and

This simulation will provide reasons for international trade and help me determine which countries to trade with, what products to import or export. Also, help with determining when to impose trade restrictions like: tariffs and quotas, and when to negotiate trade agreements. Overall, the story in this simulation has cast me in the role of the Trade Representative of Rodamia, where my office develops and coordinates international trade and investment policies, and leads negotiations with other countries on above mentioned subjects.

To facilitate these relations between nations, the globalized economies require a dynamization of trade and social relations, intensifying the flow of goods and services. A number of international agreements were created for this purpose. These groups discuss measures to reduce and / or eliminate tariffs, promoting the expansion of trade relations between member countries.

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

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

International trade is the exchange of capital, goods, and services across international borders or territories, which could involve the activities of the government and individual. In most countries, such trade represents a significant share of gross domestic product (GDP). This type of trade allows for a greater competition and more competitive pricing in the market. The competition results in more affordable products for the consumer. The exchange of goods also affects the economy of the world as dictated by supply and demand, making goods and services obtainable which may not otherwise be available to consumers globally. In the topic of trade economists agree, it is that trade among nations makes the world

According to Morrison (2006) Globalization refers to the broadening of the process by which products, people and companies are able to use their goods and service freely and quickly around the world without any border issue. Globalization has brought changes in the way we live in our countries, and a set of interdependent and good relationship among countries from different part of the world to come under one umbrella by doing business. Through movement of goods and services within the nations in the world. It involves the movement of cash transaction, transfer of technology from one industry to another. Different authors have agreed that globalization has connected wider ranges of geographic area by expanding the variety of available resources for human being needed and wants.

The world is becoming more and more interconnected and economic activity is becoming more and more globally oriented and integrated. Over the years global relationship and economic activates has been growing. While that sounds promising, globalization is also becoming one of the most debated issues and coming under much criticism. Mostly that is because world trade runs by industrialized countries and big corporations. While globalization can benefit some countries, it could also hurt others.

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).

If local company product not as good as imported products, civilian may buy imported products. It would decrease the demand for local goods, which mean local brands might be broke up. According to Baghdasaryan D. and Žigić K (2010), government tariffs’ target is preventing imported products to have higher competitive position than internal products. Furthermore, tariffs could protect domestic industry. Therefore, government applies a tax to increase the price of imported goods for helping regional brands to survive in the market. Additionally, some countries tend to open market in worldwide after they regard that their economic would not have obvious affect from other countries especially developed countries, they require their products to have same treatment in other countries, this requirement not only benefit to the exported countries’ industry but also may offer well known product to the world. Gene, Joel and Chantal (2009) claims that, in the World Trade Organisation (WTO), countries should obligate the General Agreement on Tariffs and Trades (GATT), but the people of developing country doubt that GATT and WTO could benefit to their own country because the organisation was held by industrialised countries. The successful case like India and China who have joined the WTO after they dismiss tariffs barrier. So, tariffs, in most case, effect imported goods’ price for influencing the demand on imported goods. The reason for this is

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 global economy has seen a dramatic increase in services trade between countries. The regulation and monitoring of service trade between countries has become much harder. As highlighted by Johnson, trading in services was the fastest growing constituent of global trade during the 80’s and 90’s. Cross border transactions include anything from banking to software. When services are offered to another country, the provider has to interact with the customer through either, cross border communications, movement of the provider or the consumer moving to the supplier’s state of residence. Technology has made international trade much easier and more feasible; this has lead countries to boost services being

The buying and selling of goods and services across national borders is known as international trade. International trade is the backbone of our modern, commercial world, as producers in various nations try to profit from an expanded market, rather than be limited to selling within their own borders. There are many reasons that trade across national borders occurs, including lower production costs in one region versus another, specialized industries, lack or surplus of natural resources and consumer tastes.

Globalization in economy and international trade has been an integral part of our life starting from the foods we take daily to the electronics and vehicles that we use every day. The worldwide economic globalization makes it impossible for countries not to depend on one another. It is established on the mutual supplies for each other with the products or services that they don’t have of their own. Economic globalization enables individuals to use goods from various part of the world without travelling to those countries they are made through imports and exports.

Globalization is the process in which we as humanity are coming together to form a global economy around all sorts of different infrastructures. “The globalization process implies the incorporation of national economies, cultures, political systems and various identities of capitalist system which require the removal of all hurdles to cross-national interaction and exchange often created earlier by protectionist states” (Aamir, 1). Globalization is the greatest thing to happen to us as humans, we will form together instead of being pushed apart. Companies trade with each other from different countries, this allows a wider market for both participants and makes more jobs on both sides of the trade, giving economic structors for countries in poverty. This joining of countries will allow a hermans period of our history and become the beginning of a new age where we do not fight each other for resources but work together to gain more than land or wealth. Many are concerned that these changes will leave the poor behind to become dust in the wind, but there are many global institutions that are helping to keep this from happening. Some of these Institutions like the World Bank(WB) help by giving money to countries in poverty to allow them to grow and prosper like other countries and become part of this global phenomenon. Along with these Institutions, countries that are more fortunate are attempting to help the global trade process by creating promising treaties and methods of