The Globalization of

Trade of Goods and

Services
Canlas, Karen R.
Cinco, Sarakiel Benesa G.
Costes, Angel Kate C.
De Chavez, Ken Russel C.
Del Valle, Margarete S.
01 The Globalization of Trade of Goods and Services

BRIEF H I S T O R Y O F G L O B A L I Z A T I O N O F
T R A D E O F G O O D S A N D SERVICES

Silk R o a d G a l l e o n Tr a d e

oldest known international first time that Americans were

directly connected to Asian
route
trading routes; mercantilism
02 The Globalization of Trade of Goods and Services
03 The Globalization of Trade of Goods and Services

PERFECT
C O M PET IT IO N
product is homogenous
MONOPOLISTIC
COMPETITION
product is differentiated
O L I G O P O LY
products may be homogenous
or differentiated
M O N O P O LY
product is unique
04 The Globalization of Trade of Goods and Services

A D VA N TA G E S O F T H E G L O B A L I Z AT I O N
O F T R A D E O F G O O D S A N D SERVICES

•Foundation for
international growth
•Improvement of
financial performance
•Diversification for risk
protection
05 The Globalization of Trade of Goods and Services

A D VA N TA G E S O F T H E G L O B A L I Z AT I O N
O F T R A D E O F G O O D S A N D SERVICES

•Encourages market
competitiveness
•Benefits from international
exchange rates
•Protection for revenue
stream
•Increase in
competitiveness
in domestic market
06 The Globalization of Trade of Goods and Services

D ISA D VA N TA G ES
-Political risk involved
OF THE
-Severe exhange rate risk
G L O B A L I Z AT I O N
-Cultural complications
OF TRADE OF -Credit risks
GOODS AND -Risk of proprietary
SERVICES information theft