International Economy. (21), pp. 38-50 17. Peterson, T.M and Thies, C.G. (January 2014) 'The Demand for Protectionism: Democracy, Import Elasticity, and Trade Barriers. '
What is globalization? Globalization is the development of the world on its communication and integration between countries, companies and people. According to Gunter & van der Hoeven (2004) globalization can best be split into two parts, the first being a more economic approach and the second a more policy oriented approach. The first section covers factors such as trade, investment, technology, cross-border production systems, information flows and communication. The second section covers the increase of homogenization of policies and institutions.
INRL- 360 Ozan Yılmaz 11020006031 MERCOSUR Prof. Dr. Nazif MANDACI MERCOSUR The world is changing a lot and economy getting more important than past times. Economic cooperation is a tool of new world order. Also, regionalism is an idea that implementing of economic cooperation. Mercosur is a significant and successful example for regional economic cooperation. Mercosur is a regional manisfestation of the worldwide process of globalization.
MEANING OF TRANSFER PRICING Transfer pricing is the mechanism for setting up prices of the cross border intra firm transactions between associated enterprises. With the growth of MNEs all over the world, the global trade has risen immensely and the transfer of goods and intangibles between the associated companies of the world has also increased. Due to unavoidable reasons, in such transactions of associated enterprises the prices are governed by common interest of the parties and not by market forces. Thus, the transactions of goods, services and intangibles between the associated enterprises need to be done at an “arm’s length price”(further refered as ALP). ALP is nothing but the price at which the transaction between two related enterprises would have been set if the enterprises were not related.
The term “global village” epitomizes the sociological definition of globalization. The global village has a technological dimension and a cultural dimension. The technological dimension refers to the enabling and enhancing technologies which dismantle the barriers of distance and time in communication and transportation resulting in step fall in costs. The cultural dimension refers to the cross-border transmission, diffusion and, a certain amount of assimilation of cultures; global explosion of knowledge and information; attitudinal and aspirational changes and convergences. From a corporate perspective, globalization in its true sense is a way of corporate life necessitated, facilitated and nourished by the transnationalisation of the world economy and developed by corporate strategies.
Running head: PROTECTIONISM ECONOMY 1 How National Economic Protectionism Helps National Economy Growth Yuhua Li Stony Brook University Abstract Key words: economic protectionism, economic growth, challenges, profit, free trade Introduction The idea of globalization has been widely adopted by the majority of states collaborating to deliver quality products at affordable prices. The wide campaign for open markets and increased relations is for the obvious reasons including specialization and increased productivity, the creation of quality commodities and innovation, and the identification of new markets is hence improving organizational sales. However,
Businesses nowadays must recognize that their success depends on efficiency and scalability – being able to quickly mobilize global resources and reach the world markets. Globalization has become the key to growing businesses in the twenty-first century. Globalization is the increasing integration and interdependence among countries resulting from the modern flow of people, trade, finance and ideas from one nation to another. The World Bank, a strong supporter of globalization, defines it as, "the growing integration of economies and societies around the world." (Mukherjee, 2008).
CAFTA established in 2006 with 7 member states: US, Costa Rica, Guatemala, Honduras, El Salvador, Nicaragua, and Dominican Republic. Third is ANDEAN Community. ANDEAN Community established in 1969 and has four member states such as Colombia, Ecuador, Peru, and Bolivia. The purpose of the establishment ANDEAN Community is to reduce the internal tariff and common external tariff, as well as common transport policies. Fourth is MERCOSUR, or Southern Common Market established in 1988 and has five original member states such as Venezuela, Brazil, Paraguay, Uruguay, and Argentina.
Globalization is the process by which “people across large distances become connected in more and different ways” (GLOBAL READER). The spread or advancement of these processes involves a deepening of shared experiences, and the unity of countries through the worldly concept of connectedness, and globalized linkage that globalization creates. As many activities become more similar worldwide, certain elements devalue the essence of diversity; presumably, displacing original norms and customs; ultimately, enabling people to fall distance from their basis, and become more common. Globalization is also the driving force of market expansion. Global expansion allows nearly no limits in a capitalist economy for countries that are developed with stimulated economies; on the contrary, it is bound to create a division of inequality amongst countries that struggle to advance their economies.
Finally the rapid growth of the Internet is the latest technological driver that created global e-business and e-commerce. 2) Political drivers This deep global integration sets the stage for the second driver, the development of world trading systems and standards–leading to free trade, removal of barriers to trade, democratization of capital and investment barriers, and knowledge transfer. Government can also play a role in driving globalization. Political leaders can drive globalization by implementing laws for common product and technology standards, a benign regulatory climate and favorable trade policies. Government drivers are important in forming the competitive environment because of the presence or absence of favorable trade policies; government-operated competitors or customers; and technical