explain Economic Globalization & International trade?
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Economic globalization
Economic globalization simply means the “integration of trade, finance, people and innovative ideas” and these are forced to meet in one place that is known as “global market”. We are witnessing the third wave of globalization and “interdependence” among individuals and institutions is the main characteristic of it.
The international trade
The international trade is being developed, on the other side, the consumers in most of the parts are able to get the goods and services in lower price. This becomes possible as international trade not only creates larger commodity of goods but also gives countries a space to recover from financial problems.
Economic globalization simply means the “integration of trade, finance, people and innovative ideas” and these are forced to meet in one place that is known as “global market”. We are witnessing the third wave of globalization and “interdependence” among individuals and institutions is the main characteristic of it.
The international trade
The international trade is being developed, on the other side, the consumers in most of the parts are able to get the goods and services in lower price. This becomes possible as international trade not only creates larger commodity of goods but also gives countries a space to recover from financial problems.
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Economic globalization refers to the free movement of goods, capital, services, technology and information. It is the increasing economic integration and interdependence of national, regional, and local economies across the world through an intensification of cross-border movement of goods, services, technologies and capital.
International trade is the exchange of capital, goods,and services across international borders or territories. In most countries, such trade represents a significant share of gross domestic product (GDP). While international trade has existed throughout history (for example Uttarapatha, Silk Road, Amber Road, scramble for Africa, Atlantic slave trade, salt roads), its economic, social, and political importance has been on the rise in recent centuries.
The main difference between the two is the scale on which trading takes place. Trading within economic globalisation only takes place on a regional or national scale while international trade, as the name suggests, takes trading to an international scale. Another major difference between economic globalisation and international trade is the types of trade that can take place.
Economic Globalisation affects the world in a number of ways. The industrial effects of economic globalisation saw the emergence of worldwide production markets and the movement of materials and goods between and within national boundaries brought a broader access to a range of foreign products for consumers and companies. The financial effects include the emergence of worldwide financial markets and better access to external financing for borrowers. Due to economic globalisation by the 21st century
over $1.5 trillion in national currencies were traded daily. In an economic sense, globalisation has introduced the realization of a global common market that is based on the freedom of exchange of goods and capital.
International Trade differs from globalisation as the factors of production, such as capital and labour, are typically less mobile across countries.
International trade is restricted to trade in goods and services and cannot trade in capital, labour or other production factors to the same extent. However goods and services can serve as a substitute for production trades. Rather than importing a factor of production, a country can choose to import goods that make intensive use of that factor of production. For example, rather than the United States importing Chinese labour, an alternative can be made by important goods from China that were produced with Chinese labour.
International trade is the exchange of capital, goods,and services across international borders or territories. In most countries, such trade represents a significant share of gross domestic product (GDP). While international trade has existed throughout history (for example Uttarapatha, Silk Road, Amber Road, scramble for Africa, Atlantic slave trade, salt roads), its economic, social, and political importance has been on the rise in recent centuries.
The main difference between the two is the scale on which trading takes place. Trading within economic globalisation only takes place on a regional or national scale while international trade, as the name suggests, takes trading to an international scale. Another major difference between economic globalisation and international trade is the types of trade that can take place.
Economic Globalisation affects the world in a number of ways. The industrial effects of economic globalisation saw the emergence of worldwide production markets and the movement of materials and goods between and within national boundaries brought a broader access to a range of foreign products for consumers and companies. The financial effects include the emergence of worldwide financial markets and better access to external financing for borrowers. Due to economic globalisation by the 21st century
over $1.5 trillion in national currencies were traded daily. In an economic sense, globalisation has introduced the realization of a global common market that is based on the freedom of exchange of goods and capital.
International Trade differs from globalisation as the factors of production, such as capital and labour, are typically less mobile across countries.
International trade is restricted to trade in goods and services and cannot trade in capital, labour or other production factors to the same extent. However goods and services can serve as a substitute for production trades. Rather than importing a factor of production, a country can choose to import goods that make intensive use of that factor of production. For example, rather than the United States importing Chinese labour, an alternative can be made by important goods from China that were produced with Chinese labour.
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