Good Keyword: Trade, Exports,Imports, Globalization, Countries Essay Example

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Abstract

The benefits of globalization accrue to many countries. The advantages and disadvantages are explored in detail with regard to trade flows, necessity and restrictions. The paper advances the support for providing better globalization conditions in countries which need them the most. The trade parities and necessity are discussed to explain the benefits of globalization.

Business
Q1.
Globalization is a continuous process of interaction and integration among people, organizations and governments of different nations supported by global trade and international investment with the help of information technology. Thus, it is a process of global integration by the forces of interchange and interpersonal ideas, culture and products. The use of term globalization has been around since the decade of 80s and 90s when in 2000, the IMF or International Monetary fund accorded it status with four characteristics. Globalization and global forces affect with being affected by socioeconomic resources, work economies, organization and the natural environment. By being globalized means utilizing global forces to provide commodities over and above own country, thereby enhancing sustainable international trade in a continued process of development. It has since then been influenced by free market forces as seen in the world today. The globalization as it is observed has many advantages and disadvantages, making it uniquely particular in plenty of reasons. These advantages are not limited to - Rising economic growth, for example, China observed 8 to 9% annual growth while India has had 7% annual growth for the past decade. Demographics including representation of the younger generation, expanding middle class, educated professionals, consumers, urbanization and rising incomes. Rise of the commercial demand with economic expansion, including intellectual capital and core asset development for industrial, retail, hospitality observing increasing demands of resources, products and output. Infrastructure of communication, utilities and transportation has leveled to expectations of global scale leading to infrastructure improvement like never before. A number of closed market systems have been opening up further. This has enhanced property rights understanding, as also legal reforms leading to improving the system for relaxed norms on capital controls, normalization of state industry, relaxed rules for FDI encouraging investment and growth. The trade opportunities for the industry are an important fact of globalization. Changing business communication using English as a first business language, industry etiquette aids, provides opportunity to people to work with intellectual advanced skills. Economic enhancement for underdeveloped countries to get connected with world trade. Provides outsourcing and development using skilled labor and low cost equipment in a fast changing world of commercial trade. The best examples are for African countries, India, China, Ukraine, Romania, South Africa, Egypt where the utility of various processes of commercial demand, infrastructure bottlenecks, open economy systems, trade development, economic revival and outsourcing has been underway in many rewarding ways. (Refer figure 1-9) Financial problems, cut throat competition, monopoly, increasing inequalities of income, spread of diseases, poor nations becoming poorer, unemployment in industrialized countries, increasing environmental pressure and hurting local small and traditional industry development are some of the disadvantages. According to Carl (N.d.), with globalization, there is more number of reasons when the process of advancing progress of development could recede due to any of above reasons just like that for some African countries, Syria, Zimbabwe, Libya, South East Asian countries facing trade currency crisis in 1998 etc. Thus globalization is an inherent process of development of world trade leading to growth and prosperity while there are many aspects which determine proper evaluation like supremacy of developed nations in world trade, currency regulations in trade etc.
Dahlman Carl. (n.d.). Technology, globalization, and international competitiveness: Challenges for developing countries. Retrieved from http://www.un.org/esa/sustdev/publications/industrial_development/1_2.pdf
Q2.
International trade law and institutions of global economic governance are the two main challenges of globalization in the 21st century. The international economic law is set to evolve from backdrop of traditional law into horizontal and vertical challenges. The vertical challenge of TNCs or transnational corporations, civil society and non state actors play more important position in global life not recognized by traditional international law. The territory of law is broadened to recent changes – state sovereignty is shifting to market with multifarious norms, standards and rules which become the horizontal challenge. Role of state is minimized; non state actor’s role is getting maximized. Thus, there is a progressive shift of sovereignty from the state to the market forces. The criticism of the movements is that this is a non issue for a nation and sovereignty while globalization is a myth. Between these two extreme viewpoints the aspect of hyper-globalism and skepticism lie the liberals, transformation lists and internationalists with the fact of nation state is going to stay though the modern idea of sovereignty is shaped differently so as to enable a response to the globalization phenomenon. The examples of BCCI and Enron are not far behind, where one was to have better institutional strength to state the other was to enable better global financial governance. There is a legitimate crisis to transfer of authority. Similarly, there also needs to be an urgent shift from the traditional international law of coexistence of states with the prospective modern international law of cooperation.
The existence of nation states in globalization under the aegis of the global governance institutions does not lend itself to human rights and development which is a second challenge faced by the globalization movement. According to Rodrigo (2008), the organizations WTO, GATT, IMF and World Bank had been formed to oversee the progressive support to developing countries and nation-states for the benefit of entering global trade, financial strength from institutions, longer term prosperity from stable exchange rates and global development with free trade. As Stiglitz notes, “The IMF has deviated from its original purpose of promoting global economic stability to capital market liberalization, which, in fact, has done more to serve the interests of the financial community than of global stability.” The bounds of trade liberalization and economic development have far extended than before. The adage of one size fits all rule does not work here. Even when GATT-WTO regime has been able to provide special and differential treatment to developing countries, it is non reciprocal and towards markets of these countries. A general system of preferences also provided is thought unbinding to developing countries. Exclusion of most competitive goods and conditionality has blighted the unilateralism of the treatment granting country. Under the principle of differential treatment in WTO provisions, TRIPS which is only trade related intellectual property rights and TRIMS trade related investment measures, translates to certain delay for implementing obligations for developing countries which is inadequate, insensitive and arbitrary. As Stiglitz has noted that with the current globalization wave, there is treatment which is voluntarily affected by each of advanced industrial nations at their choice.
Rato Rodrigo de. ( 2008, sept 6). Meeting the Challenges of 21st Century Globalization: The Medium-Term Strategy of the IMF. Retrieved from https://www.imf.org/external/np/speeches/2006/090806.htm
Q3.  The main decision by the US House of Representatives is prepared for changing rules for Congressional action in trade related agreements. In fact, this move would greatly affect the foundation of the global trading regime as well as US trade policy in many ways. The author states there is bound to develop a hole or a fault in the US trade policy with a possible threat on the global trading system in many decades. Under the provisions it would lead in making US as a negotiating trade partner noncredible in the eyes of the rest of the world. This is due to fact that there is sidetracking of rejected trade deals that follow long settled procedures within the US. According to Daniel (2002), in a bold move for House, action is indeed warranted without which it would be damaging to economy’s foreign policy. This move if not properly acted upon, would have detrimental effect to the goals of the new administration which had earlier (2009), expected to provide country’s stand in being most reliable partner for a cooperative multilateral world. There is need for faster and speedier acceptance of the trade agreement reforms for Congressional action. This is true for Colombia agreement, South Korea and Panama as well. The nature of globalization is sustained for government action where the most important aspect is to keenly allow State to provide regulations and agreement for foreign trade to happen. This is to say that only providing the forces of globalization like technology or banking, let loose in an economy without the overarch of a sustainable government like in free trade would be astray from goal and relevance. The fundamental problem for US would remain given a foolproof government body to undertake extended actions on behalf of the trading and government takes root or shape.
The two aspects which are indeed important here are the fact that US needs better policy stand and financial wherewithal. These two aspects are already provided for in the US. Their weakness stems from the fact that in 1970s free fall of dollar had forced tighter monetary policy to counter double digit inflation as also to address budget deficits. For the later years there was indeed a consequential outcome of large current account deficit with a sharp dollar decline which led to rate cuts in the budget. Again, the recent market crash had occurred when record imbalances were observed. This in turn led to more capital investments in United States, which kept the interest rates low. It is so that the structural weakness in determining support for congressional action is waning and is in part detrimental to future endeavors of government action. Also there are growing changes in international monetary system like those undermining the US dollar. The overall share of foreign reserves in government treasury has fallen in a decade to 60% while share of Euros has risen to 30%.
Rise of china implies it did achieve global currency status, with full convertibility on currency as well as removal of protective capital controls. The maximum dollar reserves are built by foreign monetary authorities especially from China. This is a direct result of US reserve currency status, leading to fact that others can be setting the dollar exchange rate. This is so as China would keep undervalued currency and thus lead to dollar overvaluation by intervening directly in dollars. Thus the case for a specialist treatment of Congressional action in favor of setting rules in trade laws is explicit and indeed essential. This is possible to be achieved only by the next government in US which recognizes cost of liberalization and leads to expanding assistance to workers dislocated by trade and other sources of dynamic change.
The US government must accept this to promote accelerated change. Goal is to equate international position of US dollar with euro in future and then bring the Chinese currency into the fray while creating Special drawing rights or SDRs. This could help government intervention in Euros if the exchange rate dollar-euro is not aligned with financial market, stock exchange properly. Thus the government could discourage the US dollar to be buildup by foreign authorities. This can be made possible using countervailing currency intervention and taxing the incomes of US dollar assets held by them. By providing institutional strength and lonegtivity the concern of the US trading in dollar would indeed help to reduce burden on IMF by creating a substitution account just as in 1979-80. Thus, foreign authorities can now convert their US dollars into Special Drawing Rights. International monetary system problems cannot be solved from change alone, though government can recognize the potential of future developments and take necessary action. It would also lead to speeding up of economy while also rebalancing world economy from reducing risk of future crises. Therefore, there is agreement to what the author states in changing rules to allow Congressional action based on the trade agreements.
Bork, Robert H.,Troy, Daniel E. (2002). Locating the Boundaries: The Scope of Congress's Power to Regulate Commerce. Harvard Journal of Law & Public Policy, Vol. 25, No. 3. Retrieved from https://www.questia.com/read/1G1-89163066/locating-the-boundaries-the-scope-of-congress-s-power
Q4. Two of the benefits of globalization in the past decade have been opening of closed economies and changing demographics. A number of closed market systems have been opening up further. This has enhanced property right understanding, as also legal reforms leading to improving the system for relaxed norms on capital controls, normalization of state industry, relaxed rules for FDI encouraging investment and growth. Demographics including representation of the younger generation, expanding middle class, educated professionals, consumers, urbanization and rising incomes has led to a better standard of living in many of the developing countries. The data on globalization stands out for the opening up of economies of China and India. Here the globalization forces in terms of incomes, growth, demographics and a few other progressive developments have led to economic progress, steep reduction of poverty and overall rise in standard of living. While the opening of the economy in China was from WTO scriptures and adherence to these and other conditions, India saw liberalization coming with Green revolution. In the other least developed countries like those in Central America and central Asia, reduction in poverty, opening up of economy is mandated from the internationally recognized institutions lending support for structural changes as well as for providing institutional strength. Under globalization the developing countries increased exports of low tech manufactures by 50% and high tech manufactures by 120%. Progress in economic development has been quite slow for many countries in Africa, Asia etc. Japan and other tiger economies of Malaysia, Thailand, Indonesia and Vietnam, had been even better with globalization affecting opening up of the economies from the use of better trade liberalization, macroeconomic policies, use of strong financial incentives leading to outward strong economy. High investments and savings rate which consistently exceeded 30% of GDP, during 1965-90 period. As a result, the share of private investment in total investment was remaining more than 40%. Outsourcing demand for skilled labor from these countries increased systematically to levels higher than in China.
Globalization in technology transfer is restrictive for late developing countries. This is in part the reason for putting a ceiling on free movement of labor. Increased labor mobility enhances knowledge, technology acquisition and equality from equalizing effect on wages. This planned explicit intervention from the state allows new emergent market for labor on a global scale. Similarly, capital is properly mobile from ownership of multinational organizations by developed nations. In terms of the globalization effects on the economy, there is positive change in economic growth following population changes. According to David (2007), the increase in movement of people, products and investment capital globally is affected favorably by changes in age structure as also economic growth. In 1950s, US provided 2.5 million immigrants, 4.5 million in 1970s and 9.1 million in 1990s. Even with restrictions on immigration policy, the number of registered foreigners in Japan had doubled from 1980 – 2000, i.e., 783,000 to 1.7million. Demography in transition is the fruition of globalization efforts where mortality and fertility rates would decrease from higher to lower levels. The reduction in population dependency ratio with decline in fertility is termed as a demographic bonus. The relative growing abundance of workers within better economic policies, offer outstanding economic growth.
Bigman David. (2007). Globalization and the Least developed countries
Q5.
Countries exchange goods and services with one another to lead to foreign trade. This develops a global economy and international trade. Prices, supply and demand of commodities are affected by changing global events. In a global trade there is more opportunity for the individual countries to expose their economies to products and services not available otherwise. Global trade benefits wealthy and poor nations alike. The wealthy countries utilize their natural resources, labor and produce commodities more efficiently for trade. For countries which cannot produce the more efficient of products these can be bought and sold in the international market. This leads to higher production, and benefits to the countries in exporting goods and importing at the same time with less costs, more efficiency in products for which they have advantage selling. This is absolute advantage for a country with specific endowments in either human resources, capital, etc. Even without absolute advantage a country can benefit if there is a comparative advantage, meaning trade between the countries is better off and country specializes in producing the commodity in which it is better off in comparison to other country’s production. The country’s exchange products for which they have comparative advantage leading to both being better off with trade. According to Reem(n.d.), international trade offers numerous other benefits of increasing efficiency and allowing participation in the global economy, there is opportunity for FDI into companies and their assets. There is efficiency and competitive participations. Receiving governments get FDI with foreign currency and expertise. This raises employment, growing GDP, expansion and growth with higher revenue. Therefore, nations trade for many benefits which in turn leads to sustaining an advantage for economic growth. The advantages of trading for nations are;
Using comparative advantage a country is able to engage in trade with another country encouraging specializing in goods and services which it can produce more efficiently and effectively. This is leading to the division of labor, which implies a lower opportunity cost per productive activity. By aggregating for the whole economy, it would lead to sustained development in the long run.
When there is division of labor it incrementally leads to country’s production levels to increase substantially relating to higher volumes, providing cost benefits to fixed and variable capital assets. This leads to a high number of input technologies and factor inputs being able to be combined with each other for increasing specialized technology as well as output. This is called economies of scale with technology enabled processes for the country. It can be technology or labor deepening with scale benefits for the country in longer time period.
Trade benefits lead to low world prices, in turn leading to consumers appropriating these gains as reflected in their increased purchasing power of own income. As more consumers are able to buy products in their income, there is an increase of consumer surplus over and above the economic cost or rent.
Trade breaks the domestic monopolies completely, leads to high quality of commodities encouraging innovation, design and improved application of technologies. It allows greater exchange of technologies, increase in employment and from the macroeconomic process of multiplier more investment leads to more production to an increase in jobs.
Heakal Reem. (n.d.) What Is International Trade? Retrieved from http://www.investopedia.com/articles/03/112503.asp
Q6. The history of the European union is more than 50 years old. The organization started with few member countries in 1950s. By today, these European countries come together to form EU or European Union that is a political and economic partnership with 28 countries in the continent. By European union there are certain decisions which need to be negotiated by intergovernmental or supranational independent institutions. European union is strong international organization that has active action to overcome global problems for individual country who by itself cannot deal with on their own. Accourding to (“members and history of European union,”n.d.), the European Union has developed a single market from standardized laws applicable to all members. The organization’s policies have aimed at free movement of people, goods, and capital while maintaining common policies on agriculture, fisheries, trade and regional development. The main arm of monetary union the financial laws that were formed in 1999, came up in 2002. The European union maintains diplomatic mission throughout the world and represents itself at UN, WTO, G8 and G20. It has a combined population of 500 mn inhabitants or 7.3% of world population. It has a GDP of 16.54 tn dollars constituting 23% of global nominal GDP. Its 26 member countries have sustained a very high Human Development Index HDI for living standards and in 2012 it was awarded the Nobel peace prize.

There are numerous advantages of being in the group of nations European union;

It has lower prices for commodities. This is so as there is a single market for products which are low priced with no charges to custom tax.
Citizens move freely from one country to another for studies, work or living in any European country as they may choose.
Many more jobs are created easily. Close to about 3.5million jobs have been generated over the past many years.

The organization benefits from development of deprived regions with the use of European structural funds.

The organization has a loud voice to lend to member countries. This is a best advantage of an organization which allows concerns to be heard seriously, as well as speaking globally for millions of people altogether.
Workers gain protection of life and health from European Working Time Directive includes regulations regarding holidays, working hours, work breaks, and more.

Disdvantages of being a member of the European union;

It is certainly costly to be a member of the European union, with claims that the cost per head is anywhere between £300 to £873.
Not all policies have been efficient of European union. For example, the Common Agricultural Policy created oversupply and high prices of goods.
A single currency makes a different problem when not all member countries can use Euro even though the organization has implied and emphasized this rule.
There has been instance of overcrowding from member countries in the UK. Since it is a free travel land between different countries, people have overcrowded places in the UK while also increased house prices with the effect of increasing congestion of roads.
The European union abolished passport controls for Schengen area and the policies revolve around ensuring free trade have made it significantly prosperous. Had it been a country, the European union would definitely be the first in nominal GDP and second in GDP (PPP) in the world. Out of the top 500 largest corporations, 161 have their offices in European union. In 2007, unemployment had been 7%, while in 2012 it was 11.4%. European union in 2012 had the inflation figure at 2.2%, while the current account balance was -0.9% of GDP and investment at 21.4% of GDP. On the other hand, the union’s comparative living standards are costly vis a vis member states.
The members and history of the European Union - Policy - Homepage - Foreign Affairs, Foreign Trade and Development Cooperation. (n.d.). Retrieved from http://diplomatie.belgium.be/en/policy/european_union/members_history/
Q7.
Exporting activity in a country is when it decides to part with produced commodities to sell to another country in exchange. It is an effective entry strategy for organizations who want to enter foreign markets. This is a low cost and low risk option. Similarly, small and mid sized organizations are able to use exporting as a strategy for significant financial investments. On the other hand, all countries need products in which they are deficient and cannot produce. Therefore, imports is the activity when they buy such products from a country which undertakes foreign trade in much the same way as exports is done. With a fast pace of life and high interdependency all organizations and nations explore importing products which cannot be produced or are costlier.
According to Katherine (2014), the promise of exports is in increased sales and profits. This includes adding foreign sales over the long term, with export development costs being covered, which increases overall profitability. Allowing for a high competitiveness in the domestic market helps the organization to adopt strategies that can help in the global arena. This enhances global market share to gain leverage in the long term. By selling to multiple markets, organizations can diversify business and spread their risk. With the capture of additional foreign market, there is usual expanded production to meet foreign demand, a benefit of exports. Organizations with products only used at certain seasons domestically, can sell these in foreign markets during different seasons. Organizations who venture into the exporting business are able to expand presence in foreign markets. Exports allow the selling of excess production capacity. Exports lead to an overall increase to knowledge and experience. There is an expansion of the life cycle of the product. When the product reaches the final stage, is mature, then the same product can be introduced in a different new market. Risks in exporting are present for extra costs of administration, product need of modifications to market, increasing possibility of financial risk, a greater need of documentation and information.
Importing which is also known as global sourcing refers to buying goods and services from all foreign sources and bringing them back into the home country. This is a method to substitute home country products which are not produced or unavailable providing support to domestic demand. Allows even better competitive products to enter the market. Provides input products which are otherwise unavailable to a home country. Ensures low risk of participation in world trade, less documentation problems and administration. The risks of imports are transactions being provided for by a third party, the risk of losing confidence with banker for loan and transactions as also leaving lesser room for price rationalization with the providing country for imports. Thus the risk of imports is concerning financial trust, ability of importer to sustain trade, market wide changes of contraction affecting long term trade, substitutability of tradeable products, a lower margin of profit, dumping and anti dumping allegations, changing forecasts to the market timing of imports.
Rosario Katherine. (2014, Apr 22). Export – Import bank: who really benefits? Retrieved from http://heritageaction.com/2014/04/export-import-bank-really-benefits/
Q8.
The globalization of the countries of the world has taken root from two basic ways of managing trade flow, including interdependence and the support for economic integration. The interdependence amongst nations has intensified since the past few decades in terms of increasing intensified flows between nations for goods, capital, ideas, information and people. This has enabled the cross border integration in economic, social and cultural activities. This has in turn led to both opportunities and costs. It is either not to become a sancticious process or used as a scapegoat in addressing major problems that affect globally. In the clockwork of globalization, the benefits of scale and scope have followed the major driving forces behind it – trade with investment liberalization, innovations, reduced communication costs, entrepreneurship and global social networks. The benefit of free trade and encouraging decrease in trade barriers culminated in forming of WTO in 1995. The organization’s aim had been to reduce barrier to trade in goods, but also liberalized services with capital flows. Interdependence amongst nations provided to transform ease, speed, quantity, and quality of international information flow including physical communications. Also, there is a rapid shrinkage of distance with accelerating change in the last 70 years. According to Lawrence (2003), end of state monopolies leading to competition and decline in telecommunication sector costs has been enumerated. Computers have invaded millions of households as well as development of internet technologies. 400 mn computers and 1 bn telephones in the world have 276 mn internet users with a growth rate of 150,000 persons per day. This includes 220 million devices accessing WWW with 200,000 devices being added every day. Better entrepreneurial standards following FDI and support in financial management of new ventures from state governments has added to the support for interdependence – exchange of ideas, knowledge transfer and management expertise. In particular the strength of social networking in the form of exchange of ideas and material from across the globe is phenomenal in a few seconds like from face book, twitter. This is also evident from an increase of trade volume, financial flows and accelerated economic transactions being benefitted from decreasing time and an easier delivery from payment of goods and services online. The ability to level improvements of technology in creating inexpensive, instantaneous and massive diffusion of information in politics, culture and social organization is the second aspect of globalization force or integration. There is not only an explosive growth of information exchange via internet, which follows education and social network development. Accessibility is towards a wider diverse audience with ease of accessing information also available. A citizen’s ability to share views, rights and demands has increased their sphere of influence. Consequently, citizens are coming together to demand quality of life, improvements in governance. Social protest against terrorism and unrest has taken special form which is not defined for a country but also transcends borders. Thus the globalization traditionally been managed by governments in terms of interdependence and integration has taken newer forms, but the basis for evolution remains the same since the past century in numerous countries.
Rothenberg Laurence E. (2003). The three tensions of globalization. The American Forum for Global education. No. 176 Retrieved from http://www.globaled.org/issues/176.pdf
Q9. Trade restrictions imposed by a nation are the main policy for the economy to be able to prevent foreign competition to take domestic market away from its hands. These restrictions protect national products without much worry of competence. It allows bringing national leadership to the forefront. In the design of trade restrictions through tariff and non tariff barriers there is an observed rise to domestic demand and investment. Also these restrictions indicate that trade deficit would be immune to changes of trade policy. As an instrument of public policy, it can be possible to use trade restrictions to predict and correct market failure from use of information asymmetries, imperfect competition or by pursuing non economic objectives like public health protection. Politics could use these measures to protect domestic industry when it needs it most. These times could be when the fragmentation of supply chains needs more attention of public policy and the complexity of domestic producer interests within the context. In the part development of the future of the country industry, these restrictions could reduce trade and undoubtedly increase welfare. It would depend on how the market failure is assessed the type of such restrictions and other market wide circumstances. For a restriction applied to protect domestic industry leads to trade and welfare decreasing. For restrictions correcting market failure welfare is likely to increase with unknown trade effects. In the wake of such measures of trade restrictions, the protection handed down to the domestic industry likely to reduce competitiveness which leads to sluggish economy response, low ability to produce efficient and better way, leading to economy severely dependent on government, inability to become more competitive and in need of further protection from state or need of state interventionist measures also. Empirical evidence to application of trade restrictions has observed that these significantly affect to restrict trade. When applied in certain measure these restrictions can lead to different effects. Quantitative restrictions to money supply, trading prove to undermine the effects of the measure though it does not super cede any other measure. Harmonization and mutual recognition are ways in which any negative trade effects can be mitigated. According to Sherden (2011), the Smoot Hawley Tariff act was originally intended to help revive condition of farmers, but it had gone wrong leading to drop in agricultural export income from 68% between 1930 to 1933. According to Finegold (2010), it also had the unwanted effect of souring of relations with the international community of countries. More than 40 countries retaliated with imposition of trade restrictions on US imports in their countries. By employing trade restrictions certain product manufacturers would become the leaders in their national market when the products are not of export quality. Also when the country’s export, they achieve less trade in foreign markets as they have not really developed goods of quality. At the same time this is especially true of organizations like NAFTA at international level imposing zero tariffs on products of member countries but whose protective shield does same effect on local production of low quality and expertise, with no value added to the traded products.
M. Jonathan, Catalan Finegold. (2010 Aug 12). Unintended consequences of trade sanctions. Mises Daily. Retrieved from http://mises.org/library/unintended-consequences-trade-sanctions
William A sherden. (2011). Best Laid Plans: The tyranny of Unintended consequences and how to avoid them. California: Grreenwood publishing

Q10.

Globalization in the world today has achieved more international cooperation and movement than others. As a uniting force of world level the institutional and positive aspects of trade related change is indeed laudable. International trade has benefitted from globalization where people are more educated, having higher incomes, income inequality is lesser and the divide among rich poor nations is dwindling. The reason for supporting globalization as an effective means for nations to leverage national competitiveness to advantage is further changing the capability of exchange trade in commodities. In the aftermath of world wars, the trade development crisis was envisaged to get solved from the institutional strength of international trade governing bodies like IMF, WB and the WTO. Apart in the structure of world trade, which was earlier without an aim, by the next few decades the support to individual countries had been substantial. Many closed economies opened up to the benefits of international trade. While the trading alliances and agreements provide impetus to exports and imports, the financial impetus was supported for less developed countries and developing countries of Asia and Africa. There was the spurt in education levels, with a bigger and better middle class becoming part of an international community of workers with high incomes. The relevance of such movements in human rights and development, technology and competitiveness can be enumerated and is laudable. The current globalization trends affect the reduction of autonomy of national governments in pursuing goals of growth, social equity & stability. Governments need to help their countries to adjust to globalization. A smooth adjustment is possibly made out in terms of physical infrastructure, institutional infrastructure. Technology innovation and competitiveness from the past many decades has led to further developing the landscape of trade globally. According to Adriana (n.d.), volumes of traded products is significantly higher which implies countries have been able to sustain world trade to ever higher levels, including shaping their destinies to better education levels, incomes and higher quality of marketable products. Trade liberalization that expected to move ahead in many countries has since been shaped by international institutions providing necessary impetus. Globalization as a force has made it possible for poor countries to integrate into world economy, become competitive with their exports and provide the best in terms of their productivity. Employment and generation of jobs in the countries of Africa, Asia and South East Asia has similarly progressed since the changes underway in 1980s. Innovation of products, quality, processes and higher participation in world trade has taken leaps in area of housing, information technology, computing, communications, technology etc. Generating more than resources it has globalization has proved to be versatile, flexible and larger in scope potential. As a driving force behind challenges facing an economy it has provided substantial currency solutions to numerous world crises so as to enable better intercountry trade, reducing inflation and supplanted trading countries with risk management techniques in times of crisis, allowed transfer of expertise and products across regions, made the world better integrated to shocks and systemic crises. Globalization virtues are significantly making it a system which is more important to countries for international trade than a domestic economy overhaul. More development is possible for a country based on globalization and liberalization.According to Christine(2011), qualities of social integration, intensified human actions lead to a growing awareness of living in global space. Globalization as a force of change and reform is featured in qualities which set it differently in international trade. These aspect of being borderless, high mobility, international cooperation, integration, cultural diversity and information technology with innovation have also stood out in its challenges across international law, human rights, development of international institutions. Not only this, but globalization has effectively produced numerous substantial changes to world trade and economic revival for a number of countries as well. The question of whether globalization is by virtue a boon for mankind is surely an answer which is agreed upon. This is considered in the focus of all advantages weighed with the possible fallouts and there is more agreement to having liberalized trade economy geared to global level competition than a closed protectionist system. Global market in formation of numerous relevant aspects of trade has inadvertently maintained the behemoth of surviving countries to nearly a developing country status with developed nations more sanguine of positive reforms in poverty, healthcare, insurance etc. A feedback for globalization to sustain changing environment while bringing more capable resources into an integrated framework of international institutions is a non evasive activity for which a country needs to have a continuously channeling effort.
Bertucci Guido, Alberti Adriana. (N.d.). Globalization and the role of the state: challenges and perspectives. Retrieved from http://unpan1.un.org/intradoc/groups/public/documents/un/unpan006225.pdf
Monnier Christine. (2011). What is Globalization. Retrieved from https://globalsociology.pbworks.com/w/page/14711303/What%20is%20Globalization

Appendix

Figure 1
(1996, Aug 16). Participation of developing countries in World Trade: Overview of major trends and underlying factors. WT/COMTD/W/15 Retrieved from https://www.wto.org/english/tratop_e/devel_e/w15.htm
Figure 2
Product structure of developing countries (merchandise exports), 1973-95.
aBreak in time series can affect comparison between 1985 and 1990. bIncluding unspecified products.In this table, China is not included in developing country group. 1995 figures are provisional.
(1996, Aug 16). Participation of developing countries in World Trade: Overview of major trends and underlying factors. WT/COMTD/W/15 Retrieved from https://www.wto.org/english/tratop_e/devel_e/w15.htm
Figure 3
Global trade 1985-94
    *Excluding China.
(1996, Aug 16). Participation of developing countries in World Trade: Overview of major trends and underlying factors. WT/COMTD/W/15 Retrieved from https://www.wto.org/english/tratop_e/devel_e/w15.htm
Figure 4
Cumulative FDI inflows into select developing regions 1988-94.
(1996, Aug 16). Participation of developing countries in World Trade: Overview of major trends and underlying factors. WT/COMTD/W/15 Retrieved from https://www.wto.org/english/tratop_e/devel_e/w15.htm
Figure 5
(1996, Aug 16). Participation of developing countries in World Trade: Overview of major trends and underlying factors. WT/COMTD/W/15 Retrieved from https://www.wto.org/english/tratop_e/devel_e/w15.htm
Figure 6 Developing countries (Annual averages, in per cent of GDP, unless otherwise noted)
    aFigures for developing Asia include China.
(1996, Aug 16). Participation of developing countries in World Trade: Overview of major trends and underlying factors. WT/COMTD/W/15 Retrieved from https://www.wto.org/english/tratop_e/devel_e/w15.htm
Figure 7 World trade in goods and services 1980-2012 in billion dollars from WTO
Escaith Hubert, Tamenu Bekele. (2013, Nov 27). Least-developed countries trade during the “super-cycle” and the great trade collapse: Patterns and Stylized facts
Figure 8 Export prices of goods 1980-2012 (indices 1980 =100) from WTO
Escaith Hubert, Tamenu Bekele. (2013, Nov 27). Least-developed countries trade during the “super-cycle” and the great trade collapse: Patterns and Stylized facts
Figure 9 Share of LDC exports of goods and services in world exports, 1980-2012 (Percentage) from WTO.
Escaith Hubert, Tamenu Bekele. (2013, Nov 27). Least-developed countries trade during the “super-cycle” and the great trade collapse: Patterns and Stylized facts