Globalization, trade and business

Boskov, Tatjana and Lazaroski, Spire (2011) Globalization, trade and business. In: Proc. of the Fourth International Scientific Conference on "Economic & Social Challenges 2011, Globalization and Sustainable Development", Tirana, Albania.

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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 global integration. Trade freedom is the best economic strategy for all of the world’s peoples. No single nation has the natural resources, infrastructure, and human capital in sufficient quantity and quality to realize the standard of living to which developed nations have become accustomed and to which devel¬oping nations aspire. So we trade. The major economic benefits of free trade derive from the differences among trading partners, which allow any country a chance to compete in the global market according to its fundamental economic strengths. Low wage costs, access to cheap capital, a highly skilled workforce, and other fundamental variables all play a role in determining what comparative advantage one country has over another in the global marketplace and so getting the assumption for business success. The trading process, along with technological advancement that is itself largely spurred by the dynamics of trade, is at the root of all productivity gains—truly the basis for the wealth of nations. This growth in trade did not come about by accident; it was the result of vision¬ary political leadership in economies that sustained a 50-year commitment to lowering barriers that separated the peoples of the world, and inte-grating communities and nations in a global marketplace. World trade is and should be a constantly evolving phenomenon, each trade agreement a segue to the next, with ever greater trade free¬dom the result. Trade is highly competi¬tive and complex, and never more so than in an economic downturn such as the world has experienced since 2008. Societies undertaking protectionist measures impose costs on themselves that include higher prices on goods and services for consumers and producers and lower productivity and wages for workers. The new jobs that would have been created in an open and rapidly evolving economy never materialize, and economic stagnation replaces growth in societies that doom themselves to underdevelopment. For six decades, the world has reaped the benefits of rapidly expanding trade. That expansion has come to a stop during the reces¬sion of 2008–2009. If governments succumb to political pressure or panic, a protectionist response could turn a temporary setback into a long-term change. That would harm world economic growth for decades. If, instead, leaders remain true to the vision of world inte¬gration and interdependence that inspired their predecessors, renewed economic growth and the trade that flows from and underpins it will surely follow.

Item Type: Conference or Workshop Item (Paper)
Subjects: Social Sciences > Economics and business
Divisions: Faculty of Tourism and Business Logistics
Depositing User: Tatjana Dzaleva
Date Deposited: 23 Sep 2013 08:30
Last Modified: 22 Oct 2014 10:49

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