Fair trade and free trade have an unforeseen amount of shared policies. Both groups are concerned with lessening the poverty and increase global success. Free trade is said to take place amongst countries when there are no barriers to trade by governments or international organizations. Goods are able to exchange freely between countries. The fair trade was developed and enforced to help small entrepreneurs from developing nations to compete with products manufactured by their counterparts in advanced nations so that they are not damaged by the lack of support to gather adequate resources for making.
Social globalization describes an exchange of values, ideas and it has facilitated the promotion of equality, dignity and human rights. Finally, the major effect of globalization is produced in the world economy. The aim of globalization is the growth of the global economy by giving firms a superior competitive position with lower cost through free trade and by increasing the number of consumers, products and services. Some people said it helps developing nation-states to “catch up” the industrialized ones and it improves the overall standard of living. Nonetheless, there is a risk for smaller companies that cannot compete in an international market and world governments should promote international investments and try to eliminate barriers to trade even if it causes them some
To some extent, globalization has been positive to the world, not only can it make more efficient markets, but also it creates more opportunities for firms in developing countries. In general, economic globalization is dominated by developed countries, the developing countries tend to be at a disadvantage. It has widened the gap between rich and poor. Globalization is a double-edged sword, as the popular saying goes, everything has two sides, just like a coin.
The rise of globalization has created interdependent markets that highlight the pros and cons of leveraging foreign exchange. Many proponents of global business argue that mutual benefits derive from the global specialization of products and services. The general stance is that the benefits of globalization outweigh the economic and social costs by achieving higher efficiency and by providing GDP growth in underdeveloped regions. (Boundless, n.d) Globalization offers many Benefits and advantages to the people and businesses. Just to mention are few, these include: • Greater employment opportunities for people.
The bulk of corporations prioritize their wealth over the condition of the Earth beneath them. Economic growth is important for the people, yes; it is how we develop as a society, but at what cost? The Earth takes the brunt of society 's success, and denying the inevitable will not stop it from occurring. In fact, denying climate change will only harm society and the Earth further; because by denying it, those who deny climate change are willingly aiding the damage and the danger climate change brings. Climate change is denied is due to the prioritization of business and the economy.
Many thinkers believe that VAT spread globally because it is the consumption tax best suited to the revenue needs of states in an increasingly globalised economy. Even those who recognize the role of key regional and international institutions in promoting VAT often attribute the motives behind the promotion to the merit of the policy instrument itself. The rise of popularity of VAT is attributed to such virtue as the tax being the best method taxing general consumption, its neural treatment of exports, and its revenue raising capacity (Consumption Tax Trends, 2008). VAT are especially well designed to avoid taxing business input, since each component of a retail product’s value added is taxed exactly once. In other worlds, many countries replaced their poorly structured sales taxes with a better-functioning salestax.Some experts are of the view that the rationale for adopting a VAT was quite different; the VAT was adopted to replace the corporate income tax not the sales tax.
CRITICAL REVIEW Name: Institution: Instructor: Course: Date: Globalization - Good or bad? Globalization refers to increased economic integration as a result of increased trade and investments which then leads to increased movement of people, goods, services, capital, and ideas across the world. The author of the article “Globalization - good or bad?” under review has highlighted the main reasons why globalization is a good thing that should be embraced by all nations. China and India have been cited as classical examples of how globalization can help transform the livelihoods of poor citizens and make them climb the social ladder into the middle class. In terms of International Trade, the author has described globalization as the
Fair trade and free trade have an unforeseen amount of shared policies. Both groups are concerned with lessening the poverty and increase global success. Free trade is said to take place amongst countries when there are no barriers to trade by governments or international organizations. Goods are able to exchange freely between countries. Small entrepreneurs lack the support and accessibility to gather their resources to produce their goods, so through fair trade these small scale producers will be able to compete against the developing nations and make a sustainable living.
Resting at the core of neoclassical theory, it is one of the most influential concepts in International Trade Theory. It is based on the hypothesis that trade openness promotes greater economic growth elaborating on Adam Smith’s proposal that free trade could be advantageous to all countries by introducing the idea of specialisation. Previously, countries aimed to produce everything which they needed domestically while imposing heavy taxes to keep out foreign goods. Ricardo proposed the idea of specialisation as a way to persuade countries that inter-country trade was mutually beneficial and was the most efficient way of promoting economic growth. In other words, a country gains by specialising in the production of the goods which cost them the least and exporting the surplus produce to other countries in exchange for goods with higher production costs for them.
There are pros and cons to almost everything and international trade has its advantages and its disadvantages. Whenever someone decides to do something, they have decided that the benefits outweigh the cost. International trade can greatly increase the profits of a company. It is one thing to have a national brand but to have a global brand can take your company to the next level. Going international will certainly grow your business.