The paper "The Growth of Global Integration - World Trade Organization" is a great example of business coursework. We cannot refuse to participate in global markets if we want to prosper’ . This statement will be the subject of the essay. We shall attempt to critically analyse this statement from the viewpoint that economic prosperity is predicated on further economic liberalisation and integration. The dynamism of the universal contemporary fiscal order is as critical for the economy of the world and international relations as we get further and further away from the Cold War.
Integration of the global economy is accelerating, motivated by increasing commerce and capital flows, expanding financial markets, a drop in the cost of transportation, and the revolution in information and communications technology (European Commission, 2006). This means that opportunities for growth and development are growing but the impact on natural resources is to cause strain on them, especially as pertains to climate as well as conventional industries and sources of revenue. This has resulted in the erosion of old certainties and the awakening of new fears. The response to these changes from the corporate world has included utilisation of advanced technologies as well as foreign capital and pooling from the growing force of educated labour in the developing world.
There has been a shift in global supply chains as firms outsource intricate services and manufacturing to economies where it costs less to set up. The parts that go into manufacturing a single product might be obtained from several different countries and this has taken the place of the conventional commerce in finished products (European Commission, 2006). The opportunities that globalisation brings are being taken up more and more by countries and in the latter part of the twentieth century, the global economy was driven by Japan, Europe and the United States.
These three jurisdictions have been joined in this century by other open and expanding economies such as India and China as well as Brazil, Russia and other countries. China has attained the position of the third-largest exporter is the second-largest national economy after the United States. India is the sixth-largest. This has resulted in changes in the nature of global commerce (European Commission, 2006). The proliferation of tariffs is steadily reducing over time and in the case of Europe, the measure of competitiveness is the innovation, knowledge, intellectual property, services and use of resources efficiently.
There needs to be an adaptation of trade policy and the entire perspective employed toward international competitiveness. Globalisation is a ubiquitous term used to explain or describe several global phenomena. Perspective on globalisation depends on the viewpoint in question. Proponents point out its advantages in eliciting greater economic integration across national borders, while opponents are afraid that it will be a threat to social cohesion and lead to the development of unregulated capitalism that will cut the legs out of the Welfare State (United Nations World Public Sector Report, 2001). The motivation for increased global interdependence is four-fold: Trade and investment liberalisation Technological innovation and lowering the cost of communication. Entrepreneurship Global social networks Many are of the view that the main forces behind globalisation are an innovation in technology and entrepreneurship but these two factors are not able to solely explain the process of the enhancement of economic integration.
There has been a pivotal role played by national governments in facilitating a higher level of interdependence and economic assimilation particularly in regard to activities that elaborate and adopt market-oriented policies and regulations.
This takes place both at international and local levels (Bertucci and Alberti, 2002).
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