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International Trade and Globalization
Author’s Name
Department/University
Course number
Course name
Instructor’s Name
Assignment due date
, 2
International Trade and Globalization
According to Dunung and Global (2011), trade can be defined as the exchange of goods
and services between two or more people or business entities. When trade happens between two
countries or companies in different countries, it can be referred to as international trade or
international business. Although international trade was a reality even centuries before, it started
to attain momentum after the arrival of globalization at the end of the 20th century. As noted by
Sheel (2008), globalization involves various activities between markets, states, and technologies.
One of the major purposes of globalization is to help poor countries that have fewer capabilities
to mobilize their resources properly. The concept of globalization has been treated suspiciously
by many socialist countries like China in the past. These countries accused that the purpose of
globalization is to loot the wealth and resources of poor countries by the capitalist countries.
However, these concerns were short-lived. Today, China seems to be the number one exploiter
of globalization and international trade. In short, globalization has improved the interconnections
and international trade and thereby helped countries develop more rapidly than before. Only
those countries that have better competitive power, resources, liberalized trade policies, and an
open market will be able to exploit globalization and international trade opportunities properly.
According to Ghai (2003), globalization has introduced the concepts like free market,
liberalization, and private enterprise. The arrival of the free market helped countries very much
in improving their trade ties with other countries. For example, China has not opened up its
economy very much for foreign direct investments in the past. However, Deng Xiao Ping, the
former Chinese president has of his country. He was more interested in the growth and
development rather than the development of communism in the country. So, he has diluted the
communist principles and created a free Chinese market that was attractive for foreign investors.
International Trade and Globalization
Author’s Name
Department/University
Course number
Course name
Instructor’s Name
Assignment due date
, 2
International Trade and Globalization
According to Dunung and Global (2011), trade can be defined as the exchange of goods
and services between two or more people or business entities. When trade happens between two
countries or companies in different countries, it can be referred to as international trade or
international business. Although international trade was a reality even centuries before, it started
to attain momentum after the arrival of globalization at the end of the 20th century. As noted by
Sheel (2008), globalization involves various activities between markets, states, and technologies.
One of the major purposes of globalization is to help poor countries that have fewer capabilities
to mobilize their resources properly. The concept of globalization has been treated suspiciously
by many socialist countries like China in the past. These countries accused that the purpose of
globalization is to loot the wealth and resources of poor countries by the capitalist countries.
However, these concerns were short-lived. Today, China seems to be the number one exploiter
of globalization and international trade. In short, globalization has improved the interconnections
and international trade and thereby helped countries develop more rapidly than before. Only
those countries that have better competitive power, resources, liberalized trade policies, and an
open market will be able to exploit globalization and international trade opportunities properly.
According to Ghai (2003), globalization has introduced the concepts like free market,
liberalization, and private enterprise. The arrival of the free market helped countries very much
in improving their trade ties with other countries. For example, China has not opened up its
economy very much for foreign direct investments in the past. However, Deng Xiao Ping, the
former Chinese president has of his country. He was more interested in the growth and
development rather than the development of communism in the country. So, he has diluted the
communist principles and created a free Chinese market that was attractive for foreign investors.
