Globalisation: International Trade and Globalisation Essay

Submitted By peppynicku
Words: 599
Pages: 3
Open Document
In the 21st century, globalisation is a common word of which everyone is aware of and has been described by Shenkar and Luo (2007) in their book as the speeding up and allowance of interdependence of economic and business activities across various countries with implications referring to progress, development of stability, integration and cooperation of various activities among nations.
Advantages of Globalisation for Developing Countries-
1. Free trade - It is a policy which allows countries to trade without imposing any taxes, duties on the imported/exported goods and those countries which have resolved to free trade can utilise the goods and services of the other country to increase the social welfare of the people at a comparatively lower price.
2. Transnational Regulatory Framework- With globalisation, global networks are seemingly getting more control over the economies of nations and so are taking the responsibility for the welfare of both the individual national and the global network. For instance we can talk about the Latin American, African, Asian countries which have been provided with loans from institutions like International Monetary Fund which are intended to aid in debt relief and other developments in the country for its welfare.
3. Competition to domestic economy- With Globalisation, foreign trade and direct investments come into place which increases the pressure for the domestic companies to bring their products and services up to the level of the foreign goods and thus promotes domestic reform and also opens an opportunity for the domestic players to step out and make their products global and thus bringing economy for the country.
4. Migration- Globalisation have resulted in migration of highly skilled work force from developing countries to developed countries due to the lack of job and security in home country and these migrants send remittance back to their country and thus can be seen as a boost of economy for the developing countries and skilled work force for developed countries.
Disadvantages of Globalisation for Developing Countries-
Collapse of Domestic Industries- With the removal of trade barriers in the process of free trading have resulted to the collapse of domestic industries. When IMF provides loans to countries in debt it sets certain structural adjustments along with loans and one of which is removal of any trade barriers and tariffs. Although the intention for such a policy is to bring wealth to all nations with horizontal distribution of capital, it leaves the country’s growing
Show More

Related Documents: Globalisation: International Trade and Globalisation Essay

Globalisation: International Trade and Globalization Essay

between the two eras of globalization, and describe the major advantages and disadvantages of the current era of globalization. Similarities of two eras of globalization To begin with, the first and second period of globalization is all started by world trade and investment, also the development of technology speed its pace, especially in information, communication and transportation areas. (Wild & Wild, 2012, p. 32-33, 37) After comparing and contrasting two eras of globalization, Wolf (n.d.)claims that…

Words 1723 - Pages 7

Globalisation: International Trade and Foreign Direct Investment Essay

PART ONE: Student and assessment details (to be completed by student) STUDENT ID NO. AND INSTITUTE EMAIL ADDRESS: e.g. S1234567@mail.grimsby.ac.uk S0075965@mail.grimsby.ac.uk PROGRAMME TITLE: Fda Business management MODULE TITLE: International Business issues ASSESSMENT TYPE (e.g. report, essay, etc): Essay ANY LEARNING DIFFICULTY OR DISABILITY: EXTENTION GRANTED: EXTENTION DATE HAND IN: 12/11/13 NAME OF TUTOR: Karren Burrows PART TWO: SUMMATIVE ASSESSMENT (To be completed…

Words 2860 - Pages 12

Globalisation: International Trade and Different Economies Essay

Main Reasons that have caused Globalisation 1.Improved transport, making global travel easier, for example increased efficiencies in container transport and growth of air travel. 2.Improved technology which makes it easier to communicate and share information around the world. E.g. internet 3.Growth of multinational companies with a global presence in many different economies. 4.Growth global trading blocks which have reduced national barriers. (e.g. European Union, NAFTA, ASEAN) 5.Reduced…

Words 397 - Pages 2

The Role Of Trade Flows In Globalization

1. Describe the role of trade flows in globalisation. ! ! Trade is integral to the process of globalisation. Increased trade flows have brought large benefits to many countries and citizens. Trade has allowed economies to benefit from specialisation and economies to produce at a more efficient scale. It has accelerated productivity, supported the technological advancements and increased the goods and services available to consumers. As trade flows involve exports and imports of goods and services…

Words 537 - Pages 3

The Emergence Of Globalization And Its Challenges

Introduction - 4 - 2. Determination of globalisation - 4 - 3. Emergence of Globalisation - 4 - 4. Drivers of Globalisation - 5 - 4.1.1. Diminishing of Trade Barriers - 5 - 4.1.2. Technological Changes - 5 - 5. Impacts of Globalisation and its Challenges - 6 - 6. Conclusion - 8 - Abbreviations (1st ed.) First edition (Ed.) Editor (Eds.) Editors et al. And others GATT General Agreement on Tariffs and Trade (n.d.) No date NAFTA North American Free Trade Area (p.) Page (pp.) Pages USD…

Words 2520 - Pages 11

Essay on Economics and Globalisation

Globalisation is a phenomenon that poses great opportunities and should be pursued while recognising and addressing the costs. Globalisation takes various forms, yet defined here within the economic scope due to its strong contemporary prominence and impact. Economic globalisation entails the interactions and interdependence of global markets, due to increased mobility of goods, services, capital and communications. Globalisation is driven by many factors, including technological advancements and…

Words 2231 - Pages 9

ch01 Globalisation Essay

CHAPTER 1 Globalisation Copyright © 2013 McGraw-Hill Education Pty Ltd Hill & Cronk, Global Business Today, 3e 1-1 Lecture/chapter topics • Introduction • What is globalisation? • The emergence of global institutions • Drivers of globalisation • The changing shape of the global economy • The globalisation debate • Managing in the global marketplace • Summary of main themes Copyright © 2013 McGraw-Hill Education Pty Ltd Hill & Cronk, Global Business Today, 3e 1-2 1-2 Introduction • A fundamental…

Words 2840 - Pages 12

Essay on Globalisation: Globalization and World Ordinary People

Globalisation often appears to be a force of nature, a phenomenon without bounds or alternatives. But peoples’ movements have shown that it is neither unalterable nor inevitable. Citizens all over the world ordinary people from the global North and South can work together to shape alternate futures, to build a globalization of cooperation, solidarity and respect for our common planetary environment. Globalisation is not new, though. For thousands of years, peopleand, later, corporations have been…

Words 563 - Pages 3

Economics and Globalisation Essay

Paper Number: 152.261 International Business Question NUMBER; 1, Major shifts caused by globalisation. Due DATE: 10/08/2015, 4:00 p.m. Student’s Name: Tanwani, Nishil student ID: 15254262 Student’s contact: Phone; 0211601622, E-mail ID: nishil.tanwani@gmail.com Lecturer’s NAME: dr. yuanfei kang “Globalisation” is a term used for a process in which people of the world are unified into a single society to function together. It is the integration…

Words 2462 - Pages 10

Employment and Globalisation Introduction Globalisation Essay

Globalisation Introduction Globalisation represents freedom and free trade. It provides opportunities for widening international exchanges and strengthening mutual understanding between nations. However, the opportunities associate with the challenges for environment, such as climate change. This essay will discuss It will examine the benefits offered in the areas of increasing employment and in the field of multiculturalism, as well as the contradictions caused by the culture shock and unfair labor…

Words 509 - Pages 3