International Trade And Globalization Essay

Globalization that caused by advances in communication and transportation technology causes movement of goods and service between countries easier. The liberalization and globalization of the countries in the world make the country increasingly dependent on each other because of the rise in international trade in order to meet national needs of each country for goods and services.

These changes encouraged most countries in the world to make policy adjustments in international trade practice. However, in practice the trade policies and regulations issued by a country often at odds with the market mechanism that is incompatible with the principle of free trade liberalization thus inhibit the penetration of the market for the business of other countries. Free trade is believed to improve the welfare of the countries involved in the trade with the assumption that each country has a comparative advantage compared to other countries. Trade between countries will lead the world in the use of scarce resources more efficiently and that any country can undertake a lucrative free trade by specializing

These include machining problems that still have to be imported and the absence of renewal in machines and technologies. Machine used is the average machine that has been aged more than 20 years, causing the fall of the productivity of up to 50%. In addition, the proliferation of illegal textile imports into the domestic market deadly products in the country. in 2006 the number of illegal textile achieve 50% domestic market and the majority come from China. in addition, the high cost of raw materials, such as energy supply is inadequate and expensive, the raw material cotton and textile dyes which still must be imported, as well as the high cost of port causing Indonesia lags behind countries exporting textiles such as China that have been able to meet all the factors of production