Globalisation. Discuss the economic, political and social impacts of international trade in the 21st century.
Globalisation has emerged over the past 30 years bringing new dimensions to the traditional economic thinking around international trade. Discuss the economic, political and social impacts of international trade in the 21st century.
Globalisation is the trend towards markets crossing international and regional borders, lessening the differences in customers’ wants. The process of globalisation, assisted by the technological revolution in communications and computers, is radically altering the shape of world markets, as well as the nature of business and everyday life. The , political, and social significance of international trade has been essential for the growth of globalisation. The restrictions to international trade would limit the nations to the services and goods produced within its territories, and they would lose out on the valuable from the global trade. Globalisation has not only changed the way we live it has improved efficiency in flow trade and finance, modernised technology for consumers and increased wealth.
International trade is the exchange of goods and services between countries. This type of trade gives rise to a world economy, in which prices, or and , affect and are affected by global events. Economically it can be extremely complicated especially the fact that all countries whether they like it or not, are related to each other in one way or another. For example, an increase in the price of one commodity such as oil creates a long and complex chain of events which makes analysis of all the causal relationships virtually impossible. The risk of the exchange rates can also be a impact between countries due to the different currencies around the world. During recession, countries suffer local pressure to change laws governing International trade to protect the local industries. The most painful and memorable of such incident is the Great Depression. However, nations with strong international trade have had the power to control the world economy and this has allowed them to reduce poverty. Trade has also allowed countries to increase in profits and sales which have allowed businesses to expand internationally.
