The paper "Key Issues of Global Trade" is a good example of marketing coursework. With increased globalization and technological advancement have facilitated increased global trade not only in developed nations but in developing countries. In my view, global trade can be defined as the constant exchange of goods and services across global borders. International trade in most countries represents a very significant share of the country gross domestic product. Even with the fact that global trade has been there in our history, the global trade social, political and economic importance has significantly risen in recent years (Cross, 2004).
It is evident that globalization, growth in multinational corporations, industrialization, outsourcing and advance transportation have the main impact of global trade. From various reports, it is quite evident that that increased global trade plays an important role in ensuring globalization continuity. It is quite evident that without global trade, countries would be limited to their own goods and services. Trade plays an important role in increasing interdependent and interconnected globe thus making up the world economy (Cross, 2004). Reports in 2005 indicate that the value of global exports was over 10.3 trillion whereby one third originated from developing nations and a third was also sold to these nations. The recent increase in global trade has largely been facilitated by various factors taking place within the trade environment.
Clearly, although technological enhancement, improved trade laws and agreements and increased consumer preferences have been the main reason for the increased trade they have and will continue to influence the pattern as well as economic integration across the globe (Arora and Vamvakidis, 2004). It is quite evident that improvement in transport and communication technologies has enhanced global trade through fostering investment and innovation enhancing economic integration.
According to Arora and Vamvakidis (2004), transport and communication services play an important role in the process of economic growth with a key focus on global trade. Both communication and transport allow the effective integration of local goods production into world supply chains which in turn bring domestically produced goods directly to global markets. It is quite evident that over years trade has played a key role in economic development.
Clearly, global trade has the potential in reducing global trade which is one of the millennium development goals (Feng, 2007). Global trade reduces poverty through creating jobs, increasing variety of goods and services, assisting nations in acquiring technologies and enhancing economic growth. Clearly, the buying, as well as selling of goods and services, is the backbone of our commercial and modern world and therefore many nations aim at making more profits from the expanded market as opposed to engaged in limited selling and buying in their own local borders. A nation such as China, India, Brazil and Korea today are considered to have a strong base in international trade have become more prosperous and are constantly beginning to have power in controlling the globe economy.
The fact that there are various relative costs benefits various parties ranging from individuals to companies. It is quite evident that the benefits of global trade are largely dependent on the opportunity cost of production (Feng 2007). The opportunity cost of production is defined as the amount of production of one commodity is reduced so as to increase the production of another commodity by one unit.
Global trade has been debated to be one of the key elements for a nation to develop its own needs through ensuring they meet their market and societal needs.
Arora V. and A. Vamvakidis (2004), How much do trading partners matter for economic growth?, IMF Working Paper, 04/26, Washington: International Monetary Fund.
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