The Importance Of Trade Liberalization

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The economic sphere is in particular importance. “It is a major catalyst for globalization and is at the same time the most affected area. International exports have increased 30 times in a last 60 years.” Indirect investments of companies and governments have increased significantly, many companies are searching for new markets and opportunities for cheap production in countries with law wages and soft environmental regulations. The number of such multinational corporations from 7,000 till 65,000 since the 1990s. Economic globalization is a spread of trade, transportation and communication systems on a global scale in the interest of promoting international commerce. There are two types of economies – protectionism and trade liberalization. Protectionism is protecting one’s economy from foreign competition by creating trade barriers, while trade liberalization is the act of reducing trade barriers to make an international trade easier between countries. These trade barriers are usually tariffs which are required fees on imports or exports. Canada is a good example of protectionism, because Canada places high tariffs on foods like dairy products. But on the other hand, if the Trans-Pacific Partnership (TPP) and the comprehensive economic and trade agreement between Canada and the European Union was established, Canada would achieve trade liberalization when it comes to importing of food. Since the world that we live in is globalized now the majority of countries have
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