Posted: March 24th, 2023
The public policy of many countries regarding the issues of trading agreements has contributed to the process of globalization. Since the time of the WW2, the economies of many countries have grown at a rapid pace, a process that has increased activities across the countries regarding foreign direct investment and international trade. In fact, the statistics confirm the rapid pace of globalization as the product of investment and international trade (Urata 21). Trade agreements across the world, which has taken place on the platform of GATT (General Agreement on Tariffs and Trade) as the trade negotiation) has quickened the pace of globalization. Through the treaties, countries have agreed to eliminate trade barriers, including import quotas and tariffs. In this aspect, the countries have embraced the fundamental concept of non-discrimination within all the parties.
In essence, the integration established among the countries encourages regionalism, a situation that contributes to the process of globalization across the world. Indeed, for globalization to take place, there must be trade agreements, which will encourage regional integration. Through the process of integration, the quotas and tariffs are removed. On the other hand, customs unions are established to form common tariffs (Urata 22). In addition, for globalization to take place faster, common markets must be inaugurated and the restrictions to facilitate the movement of factors of production across the regions are removed. Finally, through trade agreements, economic unions are adopted by macroeconomic policies, a situation that contributes to the process of globalization because all barriers are eliminated.
Economic growth: Comparative Advantage/Specialization
It is imperative to comprehend the principle of comparative advantage to understand the process of globalization. The principle states that the nations will specialize in the production and export of the goods they are endowed most regarding the ease of production. Therefore, the comparative advantage will encourage the countries to specialize in producing and exporting the products of high-value goods and services, high-technology goods, as well as high-knowledge services. In this aspect, the country will import goods and services that it cannot produce with comparative advantage, while on the other hand export goods and services that it has a comparative advantage over other countries. Quintessentially, every country specializes on its output strength bearing in mind that good and services not produced will be available from other countries at a cheaper price. Therefore, through this aspect, the process of globalization is quickened because every country depends on the other for particular goods and services it cannot produce with comparative advantage.
The Meaning of the term “Globalization”
To me, the word globalization symbolizes reality and diverse opportunity to the world. Whether it has positive or negative effects, the phenomenon is taking place despite how the world is considering the aspect. The term reminds the people the aspect of a single humanity where people can interact and depend on one another for a common goal. The process is happening in the world where the humanity is searching for divergent political and economic systems. Amid the negative impact of capitalism, globalization calls for a balance between production and environment. In fact, it means that the world is at a progress path where individuals learn from one another and integrate to accomplish great things. Finally, the term globalization shows that all individuals are unique yet the same. Therefore, everyone in the world has a part to play.
The Impact of Globalization on my Daily life
Globalization has impacted on my life in various ways. First, I have been able to move across the world looking for opportunities, a situation that has exposed me to different technologies, culture, information, and ideologies. Through globalization, the world has become like a big village, where we are continually being exposed to diverse cultures. Through the development of technology, I have been able to learn from other people across the world without having to travel to their place. In addition, I enrolled for an online course, which assisted me to learn entrepreneurial skills for my business from one of the most reputable institutions. In fact, the globalization we see today is the product of interaction created by people and the nations based on collaborative relations of culture, environment, politics, and the economy.
Place an order in 3 easy steps. Takes less than 5 mins.