International Trade and Globalisation

Essay by liuyang84813 October 2008

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Literature reviewRiccardo Petrella defines Globalization as "a new trend that leads the world towards an unequal division of economic activity and development". Here is the definition of Globalization according to the United Nations Development Programme: "Globalization broadly refers to the explosion of global linkages, the organization of social life on a global scale, and the growth of global consciousness, hence the consolidation of world markets". To sum up, globalization is a broad and complex issue.

The world economy supported soaring levels of trade and comparatively free capital flows between industrialized nations throughout the early 20th century. We could say that the progression of globalization started along time ago and not lately as it is alleged for most people around the world. More often than not globalization is taken to mean increasing international investment and trade, however there is much more than that. Globalization is a very wide and complex issue.

Globalization involves economic activity, having to meet international competitive standards: productivity, price and profitability. (Longhurst, Bagnall and Savage, 2005). Globalization has evolved as a crucial part of business in many companies throughout the world. To remain competitive, businesses must rely on global economies to expand markets and reduce operating costs. The process of internationalization of the economy has both positive and negative impacts on firms, people and the world in general.

IntroductionGlobalization has become one of the biggest problems in the economic world today. In the past few years, the gradual processes that gave companies time to adjust have gone. The pace of globalization has increased dramatically, meaning that in probably less than twenty years; our economy will be virtually completely global. Globalization is about businessman having to make choices and seeking opportunities to develop a global presence and it is also about how the Globalization s affect people; governments,