Globalization And International Trade

In the contemporary society, there are two terms that always well-known to the public-Globalization and trade. Also, the link between human daily affairs and international trade is becoming much closer, which leads to several significant effects such as escalating the progression of all humankind, improving the contact among people who settle in exotic place and booming the financial situation etc. However, being beset by these factors, the majority of the population is still confused by what globalization and trade are. When it comes to globalization, needless to say, that the act or process of globalizing, especially, the development of an increasingly integrated global economy marked especially by free trade, free flow of capital, and the

(Alastair, M., 2012) As is known to all, trade means that the activity or process of buying, selling or exchanging goods or services or the amount of things or services that are bought and sold or the act of exchanging one thing for another. Also, this term is origin from Middle English, from middle German; akin to Old High German trata track, course, and Old English tredan to tread in 14 century. (Sourabh J., Minjeong, C.D., 2013) From my personal perspective, it is actually quite logical and reasonable of this following statement: Globalization is said to lead to a shift in power from individual countries to “Global Capital”. Global capital is the amount of wealth, money, etc. brought in on a global scale. It could also refer to the financial company. Therefore, once knowing the meaning of Global Capital, this argument can be easily comprehended, which means that globalization deprives some countries of power and destruct interest, even it can create a great deal of advantages. It potential threats cannot be ignored and governor should control the process of globalizing even

Some of the benefits of globalization are accessing to capital markets across the world enables a country to borrow during tough times and lend during good times, it promotes domestic investment and growth through capital import, worldwide cash flows can exert a corrective force against bad government policies, it prevents excessive domestic regulation through global financial institutions, international finance leads to healthy competition and, hence, a more effective banking system, it provides information on the vital areas of investments and leads to effective capital allocation and international finance promotes the integration of economies, facilitating the easy flow of capital. So what's the harm if the entire world is coming together on a common platform? Why are we even discussing whether globalization is good or bad for the world? As I said earlier, everything has a good side and a bad side. The bad side of globalization predominantly revolves around the fact that the preferences differ from nation to nation, and coming to a consensus on any issue becomes more difficult when too many nods are required. When it comes to globalization, the difference between the rich and poor nation can be a major hindrance. Even though the richer nations will try to assimilate and help poor nations come up, they will not sacrifice on their national interests willingly.