Globalization And International Trade Theory - 1203 Words

International trade plays a big role in every person’s life. The credit should go to every economist who has contributed to the development of international trade theory. Trade is the consequence of the human â€Å"propensity to truck, barter, and exchange one thing for another† (Smith, 1776). Different people have different propensities for trading, so do different economic periods have different economic conditions, which require different international trade theories. This could be the material cause for the development of international trade theory. Mercantilism was the dominant school of thought in Europe from the sixteenth century to the eighteenth century. â€Å"It refers to the central policy prescription that the state should act like a merchant, augmenting the wealth of the nation by maximizing the surplus from trade with other nations† (Sandelin, 2014). It measured a country’s wealth by the amount of rare metals it owns. The country with more precious metals is better off than others. It aimed at making many exports and few imports to get positive trading balance. Mercantilism was dominant in France and England. Governments’ power were growing and they had big demand for lands at that time. This theory could be closely related to the wars during that period. â€Å"At the same time the rise of more powerful European states with burgeoning bureaucracies, frequent dynastic wars that required larger and more expensive armies, and more lavish court expenditures exacerbated thisShow MoreRelatedTheories of Libralism and Realism1055 Words   |  4 PagesLiberal theories of international relations have made a number of contentions on the basis of economic development and its effect on the belligerence between countries. These claims have presented evident when analyzing the post-Cold War era’s increase in the globalization of trade and investment. Globalization is the process of international economic development, enabling financial and investment markets to operate internationally in the trade and investment markets. Liberalism encompasses a worldviewRead MoreInternational Trade And Gender Wage Inequality1426 Words   |  6 PagesInternational Trade and Gender Wage Inequality Motivation for the Research: In recent years, globalization and international trade has become a significant issue for countries. Consumers tend to use more goods and services and due to the lack of resources, the need to trade with other countries seems to be inevitable. Assuming that globalization would occur, labor factors become noteworthy. Although growth in international trade provide more job opportunities for people, there are still inequalityRead MoreGlobalization: Its Effects Key Drivers and Supporting Theories695 Words   |  3 PagesGlobalization: Its Effects, Key Drivers and Supporting Theories Globalization according to Johnson (2009) can be defined in several ways and hence the term cannot be said to have an assigned definition. In this text, the definition that will be adopted was the one given approximately 15 years ago by the World Economic Outlook in which case globalization according to Johnson (2009) was termed: the growing interdependence of countries world-wide through the increasing volume and variety of cross-borderRead MoreWhat Would Our Nation Do Without Globalization and International Trade? 1574 Words   |  7 Pagesstrategies. Becoming international is an important factor in assisting organizations in becoming globally competitive. Strategic imperatives have helped in the development of globalization. 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Below is a list ofRead MoreEssay on The Benefits and Drawbacks of Globalization1396 Words   |  6 PagesGlobalization can be defined as the ability to produce and good or service anywhere in the world using capital, technology and components from anywhere and to sell the output anywhere and pl ace the profits anywhere - - Peter Jay, BBC Economics Corrospondent, 1996 Rather than lead to economic benefits for all people, economic globalization has brought the planet to the brink of environmental catastrophe, social unrest that is unprecedented, economies of most countries in shambles, an increaseRead MoreEssay about The Impact of Globalization on State Relationships879 Words   |  4 PagesGlobalization, both as an ideology and process, has become the dominant political, economical and cultural force in the 21st century. Quote from Globalism: The New Market Ideology by Manfred D.Steger, Page 6 One of the biggest questions currently asked in international politics seeks to determine the role that globalization plays in world and its effect on state relationships. While there is debate about the extent to which globalization is occurring and influencing international relationsRead MoreSolution For Contemporary Economic Issues Essay1371 Words   |  6 PagesContemporary Economic Issues The economic globalization is known as the growing scale of cross-border trade of goods and services, communication, and transportation because of Strengthening economies of a group of countries (Shangquan, 2000). Recently, many countries have encountered new types of economic problems, which is related to economic globalization. To master these problems, economists adopted two general types of economic theories. The first theory is protectionism, which is a philosophyRead MoreShareholder Theory Or Stakeholder Theory1325 Words   |  6 Pages#1 Shareholder theory or stakeholder theory â€Å"There is one and only one social responsibility of business – to use its resources and engage in activities designed to increase its profits so long as it stays within the rules of the game, which is to say, engages in open and free competition without deception or fraud.† (Friedman) Friedman’s word perfectly defines the shareholder theory. However, stakeholder theorists, like John Mackey or Edward Freeman, argue that business has an ethical obligationRead MoreGlobalization And The International Political Economy1530 Words   |  7 PagesGlobalization the International Political Economy Globalization is a major factor in our international political economy. Globalization comes in many forms, some of which will be explained herein in more detail. According to Kegley and Blanton (2014), due to globalization, the number of questions about how changes in one country s economics and politics influence trends in the word politics and the global economy (p. 328), has resulted in an area of scholarly study being coined, to wit: internationalRead MoreThe Impact Of Management On The Globalization Of Business900 Words   |  4 Pagesmanagement in the globalization of business. The multinational corporation The impact of globalization on international business International business refers to a wide range of business activities undertaken across national borders. Along with rapidly increasing globalization, international business has become a popular topic and has drawn the attention of business executives, government officials and academics. International business is differ ent from domestic business. At the international level, the