Scribd
Upload
711 views1 page

Economic Globalization and Global Trade

Economic globalization refers to the increasing interdependence of world economies through growing cross-border trade, flow of capital, and rapid spread of technologies. It reflects the continuing expansion and integration of markets globally. There are two main types of economies associated with globalization: protectionism, which uses policies like tariffs and quotas to encourage domestic production over imports; and liberalization (or free trade), which sees reductions in trade barriers through agreements and advances in transportation and communication allowing goods/services to move more freely worldwide. Trade barriers can be either policy barriers intentionally imposed by governments, or natural barriers like transportation costs associated with distance between markets.

Uploaded by

Chad Broski
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
711 views1 page

Economic Globalization and Global Trade

Economic globalization refers to the increasing interdependence of world economies through growing cross-border trade, flow of capital, and rapid spread of technologies. It reflects the continuing expansion and integration of markets globally. There are two main types of economies associated with globalization: protectionism, which uses policies like tariffs and quotas to encourage domestic production over imports; and liberalization (or free trade), which sees reductions in trade barriers through agreements and advances in transportation and communication allowing goods/services to move more freely worldwide. Trade barriers can be either policy barriers intentionally imposed by governments, or natural barriers like transportation costs associated with distance between markets.

Uploaded by

Chad Broski
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 1

Economic Globalization and Global Trade Global Trade

Bon Anthony Dom L. Abila Also known as International Trade, is simply the
Discussant import and export of goods and services across
international boundaries. The goods and services that
Economic Globalization enter into a country are called Imports, while the goods
Refers to the increasing interdependence of and services that leaves a country for sale in another
world economies as a result of the growing scale of country are called Exports.
cross-border trade of commodities and services, flow of
international capital, and wide and rapid spread of Trade Barriers – is anything that hinders trade. There are
technologies. It reflects the continuing expansion and two categories of trade barriers:
mutual integration of market frontiers, and is an a) Policy Trade Barriers
irreversible trend for the economic development in the -barriers to trade intentionally imposed by the
whole world. national governments. It includes tariffs – the taxes
-UN, as cited in Shangquan-2000 imposed on imported goods that makes it more
expensive, and the quotas – limitation of the amount of
Two different types of economies associated with imported goods that can enter a country within a
Economic Globalization: certain period of time.
b. Natural Barriers
1. Protectionism -nature too imposes barriers to international
-a policy of systematic government intervention trade. Most obviously, trade requires shipping, which
in foreign trade with the objective of encouraging increases cost with distance. Distance reduces
domestic production. This encouragement involves international trade relative to domestic trade because
giving preferential treatment to domestic producers and markets within nations are closer together on average
discriminating against foreign competitors. (McAleese, than markets between nations. Transportation costs
2007 as cited in Ritzer, 2015, p.1169) between most international markets are larger, usually
-usually comes in the form of quotas and tariffs. much larger, than tariffs or tariff equivalents of quotas.
Tariffs are required fees for imports and exports. This Distance may also be associated with higher non-
policy was practiced during the mercantilist era, 16 th to transportation trade costs, as it appears to reduce trade
17th centuries until the early years of Industrial by more that can be accounted for by transportation.
Revolution. (Chorev, 2007)
-the “Great Depression” marked the peak of the Fair Trade – it is the concern for the economic, social
protectionism. and environmental well-being of marginalized small
-until today, protectionism exist in the world producers. It aims for a more moral and equitable global
economy despite the growth of trade liberalization. economic system. Specifically, it is more concerned with
-the World War II heavily influenced the shifting the protection of workers and producers,
of the dominant economic policy from protectionism to establishments of more just prices, engagement in
liberalization. environmentally sound practices and sustainable
production, creation of relationships between the
2. Liberalization producers and customers, and promotion of safe
-also called as “Free Trade”, agreements and working environment.
technological advances in transportation and - is a trading partnership based on
communication mean goods and services move around dialogue, transparency and respect, that seeks greater
the world more easily than ever. equity in international trade.
-example of which are mobile phones – to
Jeffrey Sachs, an economist, he said: mobile phones are
the “single transformative technology”. To economist,
they call this leapfrogging, the idea that countries can
skip to more efficient and cost-effective technologies
that were not available in the past.

You might also like