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Economic Globalization Research Paper

1761 Words8 Pages

Ryan Heath
EC 2900
March 21, 2018

Economic Globalization
The theoretical definition of Globalization defines it as integration of several nations and economies for the purpose of trade, foreign investments and capital migration. The opening up of the economies of several nations, for free trade purposes, supported with technological advancement of the twenty first century were the key supporters for the sudden spurt of Globalization in this modern age (Carr & Chen, 2001). The concept of Globalization is also commonly referred as ‘globality’, which refers to a boundary less, highly connected market place; such a market place which is neither distinguished by time zones, not the national borders of several countries (Pologeorgis, …show more content…

This is the amount of money that individuals invest into foreign companies and other assets which leads to growth in employment and revenues and it promotes activity, progress and innovation within an economy and improvements in manufacturing quality for both the countries.
International trade can also be very harmful for some countries which leads to government regulations and the limiting of some international trade. Governments impose restrictions on international trade for many reasons. Government will restrict international trade if the domestic industries are not in a position to compete with the foreign industries. The government will also impose restrictions on international trade to promote business domestically and grow their own economy. Because of these restrictions, the prices stay high which help the domestic industries to grow and develop. Governments usually restrict trade in three main ways. Tariffs, quota systems and subsidies. The fees that someone pays on imported goods is known as a tariff. Tariffs increase the price of imported …show more content…

Trade can be very effective in conflict prevention and increasing the number of regional trade integrations. The Doha Development Agenda and trade liberalization have helped lead to a relationship of peace and prosperity within many nations. Promotion of trade and investments has been one of the basic tools of economic diplomacy. Some tools are trade liberalization, Regional Trade Agreements, and Free Trade Agreements Industry for a peace initiative. These were used as tools for maintaining economic diplomacy and political stability between some countries. Moreover, free trade agreements boost relationships between countries and increase employment and growth in all areas. Managing a political economy effectively and devising multi-faceted solutions is at the center of today’s policy challenges, truly testing the ability of governments to cooperate efficiently with one another. It is therefore no surprise that in addition to various stimulus packages, and laying the foundations for better global financial governance, leaders also sent a powerful message on trade and the importance of rapidly concluding the WTO Doha Development Agenda

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