Introduction
The current era is totally dedicated to the technology and industrialization. The corporations that are operating in this era are highly effective and technological efficient . Among numerous businesses, the name of trading business is one of them. Trade is one of the most effective provisions from the standpoint of an economy as it a thing that leads to increase the influx of foreign direct investment (FDI) with increasing the Gross Domestic Product (GDP).
Trade that also known as “Exchange of Goods” is basically used to transfer the ownership of goods from one person’s entity to another person by getting something in return. It is one of the oldest businesses of the world. At the time in old years, the essence trading business was extremely high and it grew with a positive and effective pace in particular. There are two different types of trades that particularly are domestic trading, and international trade. Domestic trade is the one that initiates in a given country, while the trade that will be initiated outside a given country is known as International Trade .
Inevitably, the current era of trading is much more effective, and convenient as compared to the prior one because of the globalization. There is a significant relationship is found among globalization, and effective trading. The main perspective of this assignment is to analyze the stance of globalization in terms of trading . Apart from the discussion, it is required to pen down the pros, and cons related to the same.
Every business needs globalization in this era, and trade business is very much interested in it. There are number of economies of the world that emphasize heavily over the trading business to enhance their economic consequences, like Japan, China, Dubai, and others.
The term Globalization referred to a process of international integration arising specifically from the interchange of world views, ideas, and core products. Advances in trading mediums like telecommunication, transportation, infrastructure, and the rise of telegraphs, and its core posterity on the internet are some of the major advantages that globalization bought.
The term globalization has been using heavily after the era of 1980; even the International Monetary Fund (IMF) has also identified four basic aspects of globalization that particularly are capital, investment, transaction, and trade. The process of globalization affects the financial health, and strategic role of a country economically, social, cultural resources, and natural environment in particular .
There is a positive, and effective relationship is found among international trade, and globalization, as globalization pampered the entire world in a small box, wherein the level of communication and interaction enhances tremendously well. A trade that has been initiated through globalization has been referred as Trade Globalization. Trade Globalization is a type of economic globalization, and measures of economic based integration. Trade, globalization usually represents the proportion of all production that crosses the boundaries of a country on a level of natural scale. Trade leads to increase the exports of a country that is a major element of GDP computation. The higher the exports of a country, the higher will be the foreign reserves, and lower will be the rate of unemployment. Globalization did a fantastic job in minimizing the barriers among the international trade by diminishing the boundaries around it.
One of the major benefits of trade through globalization is restricted in the foreign trade stem to not to market their products to international markets . From the standpoint of a national economy that access, the mean an opportunity to get benefited from the international division of labor. Currently, there is an immense competition in the trading business, but globalization has reduced the essence of competition completely that certainly benefited the countries considering the functions. New technological Spill Over is possible through the essence of globalization. These particular spillovers are extremely vital for the developing countries as they give them a certain chance to catch up more quickly in terms of production for the developing countries. Through the relationship of globalization, and trade, the associated cost of trading is reduced effectively, that is also effective for the sake of economic prosperity of a country. Development of natural resources and endowment in the financial market are some of the major aspects of globalization and this is the major thing due to that the economic enhancement of a country is possible. The entire world has now emerged as a place where in the essence of globalization has emerged tremendously well for the economic well being of a country, therefore the relationship between globalization, and trade is high and positive.
Conclusion
There are numerous concepts that stride under the literature of economics, and among them, the name of Trade is yet another. Trade is used to make a country economically prosperous, and international trade is much more effective in this particular provision. From the entire analysis, it is found that the association of globalization is extremely vital for trading business, and for countries, hence it could be said that the relationship is positive for both of them, and also positive for the countries as well.
References
Hutchens, A. (2009). Changing Big Business: The Globalisation of the Fair Trade Movement. Chicago: Edward Elgar Publishing.
Lofdahl, C. L. (2002). Environmental Impacts of Globalization and Trade: A Systems Study. London: MIT Press.
OECD. (2011). Globalisation, Comparative Advantage and the Changing Dynamics of Trade. Frankfurt: OECD Publishing.
Oliver Morrissey, I. F. (2010). Globalisation and Trade: Implications for Exports from Marginalised Economies. New York: Psychology Press.
Tonts, M. (2009). Trade and Structural Adjustment Embracing Globalisation: Embracing Globalisation. Miami: SAGE.
