GLOBALIZATION
AND INTERNATIONAL TRADE
N.SARAVANAKUMAR M.A., M.Phil., Ph.D.,
Abstract
"Globalization" refers to
the growing interdependence of countries resulting from the increasing
integration of trade, finance, people, and ideas in one global marketplace.
International trade and cross-border investment flows are the main elements of
this integration.Globalization started after World War II but has accelerated
considerably since the mid-1980s, driven by two main factors. One involves
technological advances that have lowered the costs of transportation,
communication, and computation to the extent that it is often economically
feasible for a firm to locate different phases of production in different
countries. The other factor has to do with the increasing liberalization of trade and capital markets: more and more
governments are refusing to protect their economies from foreign competition or
influence through import tariffs and nontariff barriers such
as import quotas, export restraints, and legal prohibitions. Asian economies
such as Hong Kong (China),
the Republic of Korea,
and Singapore.
But not all developing countries are equally engaged
in globalization or in a position to benefit from it. In fact, except for most
countries in East Asia and some in Latin America,
developing countries have been rather slow to integrate with the world economy.
The share of Sub-Saharan Africa in world trade has declined continuously since
the late 1960s, and the share of major oil exporters fell sharply with the drop
in oil prices in the early 1980s. Moreover, for countries that are actively
engaged in globalization, the benefits come with new risks and challenges. The
balance of globalization's costs and benefits for different groups of countries
and the world economy is one of the hottest topics in development debates.
Guest
Lecturer in Economics,
PG
and Research Department of Economics,
Arulmigu Palaniandavar College
of Arts & Culture,
Palani,
Dindigul
District,
Tamilnadu