The Role of International Trade in a Globalized Economy

Introduction

In today’s world there is no country that produces all the goods, so every country try to produce those good and commodities in which it has comparative advantage. It then exchange these goods and commodities with another country and buy those goods that are not produced by own country. The comparative change in factor endowments, technology, flavors etc., between the nations of the world have greatly broadened on the basis of international trade.

Integration in the economy of the world has been considered as the most powerful means for the particular countries that have been encouraged for growth, poverty and the development of the country’s economics. If 20years back is considered the trade of the world growth has been as low as 6 percentage of the total year and the out of the world is twice as compared to it. For many of the years the trade is considered to be the engine of the country’s growth of the economy.

In the business of the dynamic environment, when globalization is putting the mark of the development of the specific, the decision of the company in the particular area, the marketing can be considered as very crucial.  The products and the company’s services have to conduct the activities that are related to the awareness that is increasing and also the activities are promoted. Moreover, the culture that is commonly prevailed in the particular area has its impact on the activities of the marketing and there are often type of the researches that may be conducted for the purpose of the investigation about the relationship between the interest and the attitudes of the consumers that is directed towards the product of the company and that this plays a very important role. The income of the capital should be taken into consideration form the market that is being targeted for evaluating the consumer’s potential and that it will be influenced by the policy of the decisions of the market. In today world, the companies have no access to the markets of the international, which may be having some sort of new opportunities for the development of the business. Thus, the trade that is on the international level may be supported by the globalization process, in which the markets are beyond the borders of the country home. The trade that is referred as international trade is primary the trade of the services and the goods across the country’s border. There is number of companies that are playing a vital role in international trade development, among many other factors such as outscoring and globalization. Because of the international trade, consumers who are in the different country are able of purchasing the goods and also the services of the abroad, resources of the significant implying, as the crossing of the border requires the cost that is certain, for instance the economic, taxes, culture and the social, legislative and the difference of the political between the countries.

International Economics

International economics can be related to the study of the economic and the relation of countries. It is basically the field of the study that may assess the international trade implications and also the borrowing international, investment disciple. The international trade can be considered as the field of economics that often applies the models of microeconomics that may help in the understanding of the international economy.  The satisfied may include the analysis of the demand and the supply of the international firms, market and the behavior of the consumer, which may be the competitive and the market of the monopolistic structure, and the distortions of the market efforts.

The finance of the international can be applied to the macroeconomic models as this helps in understanding the economy of the international. It sometimes focuses on the interrelationships of the economic collective variables for instance the rates of the unemployment, GDP rates of the inflation and balances of the trade, rates of the exchange and the rate of the interest and many more. The field can be extended for the basic macroeconomics for including the exchanges of the international. It may have the focus on the significance of the imbalances of the trade, the rate of the exchange determinates and the system of the rate exchange can be among the issues that are significant and are addressed.

It is considered to be vital for the company that may need its services and the products in other countries for considering he culture that is locally prevailed and the language that is locally used, and hence they are able to find the position of the strategy successfully in the market. There is number of challenges that are faced by the companies in the level of the market, the terms may not only include the services and the products of the company. The company may have the planning program that must be enough effective and also that it should have the strategies that are effective for many purposes such as the transportation, sourcing, activity of the marketing, and they have the results and the demands that may be different between the countries and the different regimes subject to the policies of the trade, infrastructure, legislation and the culture and many more. The companies must be social, and responsible environmentally, they are required to be engaged in the actions for the sake of the good society, and for having a successful business.

The role of international and regional specialization has equal importance. The specialization of the region means that there are number of areas and the regions of the country that have specialized themselves in the different products and their production. The specialization of the international means that the different countries all around the world can be specialized in the production of the products that are different. The factors that are determining the regional specialization can have less or more the determination of the international specialization. the country which is specialized in producing the goods of the surplus for instance they produce the products more than they are required, such products will be exported in number of other countries for the exchange of the surplus that is producing in that particular countries.

 The role of international trade in a globalized economy

The role of international trade in a globalized economy

The Globalization and the Countries Interdependences

The process of the globalization can be the integrating internationally, and the development can be because of the exchanged that has increased of the services and the products and many more at the level of the global and also the other many aspects are influenced that may be related to the social and the cultural environment. Over the many year the process has been influenced in the different fields such as the development and the progress from the transport to the ITC which may be the one who is supporting the interdependences of the activities of the market and also of the other many operations of the business for instance logistics, management and the accountancy and there are many more. The production of the diversification and the growth process for many products such as the machinery, textile and the development of channels of the communication and many more that are considered as the factors that are decisive in the development of the changes that may be occurring in the 19th century and the 20th century may be influenced by the developments in the different areas of the ICT and also of the transportation.

The complex process of globalization can be environmental, social, implications of the culture and they are connected strongly with the mechanism of the economics and there is number of aspects that may be related to the production, markets and much more. The globalization can be considered as the area of the economics that mostly refers to the interdependencies of the country’s economy, as there is an increase in the flows of the cross-border of the services and the products, services and the capital. The globalization of the economy may include the number of different aspects of economics such as the process of the production and the finances, institutions, markets, forces and many more. The countries of the world are becoming not only economically increased interdependences but in the process of economic growth integration, the companies must not have any type of negative outcomes in the area of the social and the environment.

International Trade and the Globalization:

Globalization can be referred to as the interdependences that are growing within the counties and resulting from the combination of the finance, trade and ideas in the market of the globe. The trade of the international and the investment of the cross border flows can be considered as the main elements for the integration. From the World War II the globalization has been started but the globalization has increased from the mid of the 1980s, it has been driven by the main and most important two factors which can be the advances in the technology which helps in lowering the cost of the communication, transportation and the calculation to extent that is it can be economically reliable for the particular firm in locating the phases that are different for the production in the different countries. The other and the second factor may include the liberalization that is increasing the capital and the trade markets, there are number of the governments who are refusing for protecting the economics of their counties from the competition of the foreign and that it can be influenced by the tariffs of the import and also the barriers of the non-tariffs such as the quotes of the imports, restraints of the exports and the prohibitions of the legal. There are number of institutes that have been established during the wake of the World War II such as they include the World Bank, General Agreement on the Tariffs and also the trade (GATT), it got succeeded in the year of 1995 by the WTO which stands for the World Trade Organization and the International Monetary Fund (IMF) and many more which have played a very vital role in the promotion of the free trade in the place of the protectionism.

The economics of the country may deal with the allocation that is proper and also uses the efficient resources that are scarce. The international trade may also have the concern of the allocation of the resources of economics among the different countries. Such types of the allocation is being done in the markets of the world with the process known as the international trades which have the concept of the free trade, hereunder such types the best of all products may be produced and are also sold in the market of the competitive and the benefits of the production efficient for instance the quality that is better and the process are much lower and so that it can be available to the people around the world.

Positive Effects of the International Trade

  • The trade of the international may inject global competitiveness and in this way the business that is domestic may become the most efficient that may be exposed in the competitor of the international.
  • The countries that are developing have a much higher level of the protectionism of the trade and have the measure that may be compared to the countries that are already developed.
  • The labor-intensive products such as the textiles, foot ware, clothing and many more are the products that may be exported by the countries that are developing to the countries that are already developed and the countries that are in the struggle of being developed.
  • The trade of all types may have the exclusion of the barriers of the trade in the products of the agriculture of the countries that are developed and this may lead to the decline and the rise in the production and the prices.

Growth of the Economics and the International Trade

The international trade and the growth of the economics may have given the importance of the substances which have the introduction of the liberalization of the trade policies in the nations that are developing all over the world. The international trade has its impact on the growth of the economics that crucially that directly depends on the globalization. And as the international trade is concerned on the growth of the economics, the makers of the policy and the economists have developed the economics into the main two groups;

The first group of economists has the view that the trade of the international level may be able to bring the changes that are unfavorable in the scenarios of the economics and the financial in the countries that are developing.

The second group of economists may have the view in the favor of the international trade and the globalization that they have come from the very brighter concept of international trade and they have the impacts on the growth of the economies in the countries that are developing.

Conclusion

In the conclusion, the international trade is the one that leads to the growth of the economics and is responsible for providing the measures of the policy and the infrastructure of the economics can be accommodative for coping with the changes that have been brought in the social and the scenario of the financial that may be the result from this. It may have to face the competition of the cross border challenges, a very well national functioning of the competition that regime in the insufficient and there may the problem in the countries that are developing and they may be the one who is lacking the resources or even the experiences that are needed to tackle the challenges of the competition of the international. The transportation may be considered as one of the aspects where the progress of the economy has been made the most of the conspicuous. A very well organized transport of the global may have a very vital role in the trade of the global and in the development of the economic. There are number of steps which have been already taken at the international level for instance he UNCTAD, OECD and the WTO and many more. The authorities of the competition of the different countries have turn out to be together for the promotion of the competition of the international network. At the same time there may be the need for pushing the many other agreements of the international on the competition of the cooperation. There is certain provision of the territorial extra jurisdiction in the law competition but at the same time the capacity is very limited.

For more academic help please check a wide range of services our Economics Writing Help team offers:
– Economics Assignment Writing Services
– Economics Essay Writing Services
– Economics Dissertation Writing Services
– Buy An Economics Research Paper

Give your grades a boost

500 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$0.00

How to place an order:

  1. Select your academic level and the number of pages and pick a desired deadline

  2. Then press “Order Now”

  3. Add your instructions

  4. Choose writer’s category

  5. Make a payment

  6. Get your paper before the deadline

Not Ready to pay? Try for free!

free inquiry
Top Academic Writers Ready to Help
with Your Research Proposal