Globalisation of Trade Literature review Example | Topics and Well Written Essays - 2500 words

sphericization of Trade - Literature review ExampleThe very idea eliminated international trade barriers which in unloosen intensified liberalised cross border trade. As Cairola (2007) points out, demonstrable countries dramatically increased their production levels during the 1950-70 by by dint of international diffusion of mass production and assembly lines hence, there arose a need for finding virgin markets to supply excess products and services. Companies believed that exporting of these excess items to foreign needy markets would be a potential dodging to promote growth (ibid). In addition, intra-firm trade also contributed to the current international trade. On the other hand, developing nations also supported the idea of internationalisation of world(a) production since they find it as a focussing to kick upstairs their growth by supplying raw materials and labour to multinational enterprises. As the author points out, mingled with the 1960s and the 1980s, developin g economies started to change their focus from import substitution to export promotion policies with intent to enhance economic stagnation. They also gave specific importance on their industrial ripening. Thus, developing economies eventually began to integrate into the global trading system even though their participation is still lower as comp ard to other developed economies (ibid). In order to take advantages of the trade liberalisation, organisations today are trying to become less gradable and more decentralised. Undoubtedly, multinational corporations detect more advantages of trade globalization as they get free get to to global markets despite cross border barriers. In order to enhance foreign investments, governments are promoting development of transnational corporations. Even though countries like China put obstacles to foreign investment, currently they are demulcent their attitude towards multinational enterprises. Globalisation critics argue that multinational co rporations take unfair advantages over poor countries by exploiting their physical resources and labour. This criticism seems to be true to some extent while analyzing regions like Africa and Latin America. As Domer (1999) points out, African countries still remain underdeveloped whereas the Latin American region is still dependant on Western economies. The author points out that the African economys growth rate stood at approximately 2% over the 1984-1993 period and this poor rate was not enough to meet even increase needs of the African population (ibid). The increased European influence and lack of an effective leadership significantly contributed to Africas stunted growth. Weakening commodity prices was the major growth impediment to Latin American countries in 1990s and many of the Latin American countries still heavily depend upon cracking inflows from industrialised countries delinquent to their huge external debts (ibid). Arguments for globalisation of trade The process of trade globalisation has benefited economies across the globe to obtain uninterrupted supply of different goods and services and take advantages of improved overseas facilities. Some of the benefits of globalisation are listed below. 1. Improvement in international relations As a result of globalisation of trade, the concept of global economy came into existence which in turn enhanced the growth of different segments of the international market. In addition, the globalisation process resulted in the creation of a global market and a global system of production. Evidently, capital marketers also enjoy far reaching benefits of globalisation as this concept has led to the integration of fiscal systems. With the emergence of globalisation, dramatic developments took place in the area of telecommunications media which