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    Economic Globalization and Global Trade 1

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    Mayrell Panoncial
    Globalization refers to the increasing interconnectedness of economies around the world through trade and financial flows. It has increased trade between countries through reducing trade barriers and transaction costs. Globalization has also affected global trade by pushing for better systems to track international trade, increasing production efficiency through global supply chains, and integrating product and financial markets through capital flows and cross-border activity. Overall, globalization fosters free trade which can expand opportunities and prosperity, though it also raises issues around inequality and corporate influence.

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    Economic Globalization and Global Trade 1

    Uploaded by

    Mayrell Panoncial
    1K views18 pages
    Globalization refers to the increasing interconnectedness of economies around the world through trade and financial flows. It has increased trade between countries through reducing trade barriers and transaction costs. Globalization has also affected global trade by pushing for better systems to track international trade, increasing production efficiency through global supply chains, and integrating product and financial markets through capital flows and cross-border activity. Overall, globalization fosters free trade which can expand opportunities and prosperity, though it also raises issues around inequality and corporate influence.

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    Globalization refers to the increasing interconnectedness of economies around the world through trade and financial flows. It has increased trade between countries through reducing trade barriers and transaction costs. Globalization has also affected global trade by pushing for better systems to track international trade, increasing production efficiency through global supply chains, and integrating product and financial markets through capital flows and cross-border activity. Overall, globalization fosters free trade which can expand opportunities and prosperity, though it also raises issues around inequality and corporate influence.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    1K views18 pages

    Economic Globalization and Global Trade 1

    Uploaded by

    Mayrell Panoncial
    Globalization refers to the increasing interconnectedness of economies around the world through trade and financial flows. It has increased trade between countries through reducing trade barriers and transaction costs. Globalization has also affected global trade by pushing for better systems to track international trade, increasing production efficiency through global supply chains, and integrating product and financial markets through capital flows and cross-border activity. Overall, globalization fosters free trade which can expand opportunities and prosperity, though it also raises issues around inequality and corporate influence.

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    of 18

    Economic

    Globalization and
    Global Trade

    GROUP 6
    Reporters:
    Jade Christian Gonzaga
    Mayrell Panoncial
    Kc Wamilda
    James harry G. Avenido
    Daisy Rose aya-ay Espinosa
    Hazel Navares
    Carlyn Kim Berame
    Regie Mangubat
    Therese Ong
    OBJECTIVES
    •Global economy

    •Economic globalization
    •Two types of economies
    •How to make trades more easier
    •Institution of Globalization
    •Benefits VS. Drawbacks
    •Connection between free trade and
    economic Globalization
    •How globalization affect Global trade
    How trade affect economic globalization
    bal Econo
    lo my
    G

    refers to the interconnected worldwide economic activities


    that take place between multiple countries.
    *It refers to the exchange of goods and services between
    different countries, and it has also helped countries to
    specialize in products which they have a comparative
    advantage in.
    Economic Globalization COMMUNICATION
    MODERN COMMUNICATION TECHNOLOGY AND MASS
    MEDIA ARE GLOBAL STANDARD. §IT’S RELATIVELY EASY
    AND INEXPENSIVE TO STAY IN TOUCH.

    •THE SPREAD OF TRADE, TRANSPORTATION, AND


    COMMUNICATION SYSTEMS ON A GLOBAL SCALE IN THE
    INTEREST OF PROMOTING INTERNATIONAL COMMERCE
    •ALSO INVOLVES A WIDE VARIETY OF PROCESSES,
    TRANSPORTATION
    OPPORTUNITIES, AND PROBLEMS RELATED TO THE SPREAD
    OF ECONOMIC ACTIVITIES AMONG COUNTRIES AROUND TRAVEL AND SHIPPING ARE CHEAP AND SAFE.
    THE WORLD

    TRADE
    MULTI-NATIONAL CORPORATION HAVE

    GLOBAL REACH AND INCREASING POWER e.g..

    McDonald Corp., Intel Corp. etc. §GOVERNMENTS

    HAVE DECREASES TARIFFS AND REGULATION

    ON INT’L TRADE

    TWO TYPES OF ECONOMIES

    1.PROTECTIONISM
    • Protecting one’s economy from
    foreign competition by creating
    trade barriers
    * Domestic products> Imported
    goods

    BANS
    TARIFF

    2. TRADE LIBERALIZATION

    * Reducing trade barriers to


    make international trade easier
    between countries
    * Also called “Free Trade

    TARIFF

    IMPORT QUOTA

    BANS
    EXAMPLE OF RARIFF

    PHIL:
    BARNUTS BARNUTS
    P1.00 P6.00

    5 PESOS on
    IMPORTED of
    barnuts
    EXAMPLE OF COUNTRY THAT UNDER
    PROTECTIONISM

    CANADA
    USA
    GERMANY
    CHINA

    HOW TO MAKE TRADES MORE EASIER


    1.) FREE TRADE


    The trading of goods or services between two or more
    countries without tariffs or taxes.
    e.g. connection between Canada and South Korea

    97.8% 92.8%
    2.) TRADE BLOC

    Agreement made between government to reduce or


    eliminate trade barriers

    E. G. NAFTA( NORTH AMERI CA FREE TRADE AGREEMENT)


    CONSI ST OF CANADA, MEXI CO AND UNI TED STATES.
    3.) OUTSOURCING

    Outsourcing is the manufacturing jobs transfer from


    developed nations to developing nation reduce the
    cost of Products.
    INSTITUTION of globalization
    WORLD BANK
    . • Also called Int’l Bank for Reconstruction and Development (IBRD)
    Increase in economic growth and decrease poverty in developing countries

    WORLD TRADE ORGANIZATION (WTO)

    •Formerly known as General Agreement on Tariffs and Trade (GATT)


    •Deals with the rules of trade between nations, settles trades disputes and conduct straight
    negotiations.

    INTERNATIONAL MONETARY FUND (IMF)


    Provides short term loans to countries when an emergency occurs.
    BENEFITS VS. DRAWBACKS
    WORLD TRADE ORGANIZATION

    SOLVES TRADE DISPUTES BETWEEN COUNTRIES IN A PEACEFUL WAYS

    BUT ONLY FOCUSES ON DEVELOPED NATION

    LOWERS THE COST OF GOODS AND SERVICES FOR THOSE DEVELOPED NATION

    TO ACHIEVE LOW COST , LABOURRIGHTS AND ENVIRONMENTAL CONCERNS ARE IGNORED.

    PROMOTES ECONOMIC GROWTH IN DEVELOPED COUNTRIES

    FAVOURTHE RICH NATIONS AND POWERFUL TRANS-NATIONAL CORPORATION


    Connection between Free Trade and Economic
    Globalization

    •Globalization represents free trade which promotes


    global economic growth; creates jobs, makes
    companies more competitive, and lowers prices for
    consumers.
    How trade affect economic
    Globalization

    The integration of national economies into a global economic


    system has been one of the most important developments of the
    last century. This process of integration, often called
    Globalization, has materialized in a remarkable growth in trade
    between countries.
    How Globalization Affects Global Trade
    * Globalization pushed us to create
    better systems
    to track international trade. ... Technology empowers
    efficiency in global trade and reduces cost and time.
    In addition, production processes became more
    efficient due to globalization as companies want to
    maintain their competitive advantage
    * Globalization of product and financial markets
    refers to an increased economic integration in
    specialization and economies of scale, which will
    result in greater trade in financial services through
    both capital flows and cross-border entry activity.
    *
    CONCLUSION
    ● Making trade

    regulations and related processes more transparent

    number of firms and individuals, thereby increasing their opportunity to trade and
    possible

    take advantage of global market opportunities.

    ● So this relation can be seen as a way to change the circumstances of trade

    within a country that give rise to inequalities in opportunities to trade. Societies

    which lead to free trade politic create their own economic dynamic, fostering the

    source of freedom, opportunities and prosperity that are used by any creating their

    own dynamic via prosperity.

    ● This era of market globalization could be freedom and bigger prosperity.

    ● The success of a country's participation in the global economy is largely

    determined by its ability to maintain high quality trade infrastructure and a

    competitive environment in the logistics services industry.

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