Course summary (Globalization):
Objectives:
- Learn about trade liberalization and the formation of the
World Trade Organization WTO.
- Identify the positive and negative effects of globalization.
- Understand the various regional economic agreements and
their relevance to both regional and world trade.
- Explore the historical Development of world trade over the last decades.
In the last few years the world economy has gone through some major changes, the result of which has been the creation of a
global market. With the establishment of the World Trade Organization (WTO), almost all economies
of the world are likely to establish more and more interdependent relationships
with each other. In the 1980's the world economy was characterized by
international trade between large economic blocs, since the mid 90's International trade has tended
to develop towards globalization to a stage where it is feasible to conceive Trade without frontiers in the not too distant future.
Today we witness the emergence of a new economy:
The world as a Global market!
Domestic trade has become global trade, where the entire world is a global
market. You are now probably working on a computer which was produced in China using Japanese chips and an American operating
system. You may be wearing a pair of trousers made in Taiwan, Italian sunglasses
and a Swiss watch. Perhaps tonight you will have a glass of Spanish or
Chilean
wine or a cup of Kenyan coffee with your dinner. You may drive a Korean or
German car, use a Finnish phone or smoke Cuban cigars. This is our reality
today, which has become possible due to globalization.
A core element of globalization is the expansion of world international trade through the
elimination or reduction of trade barriers
(import tariffs).
Globalization refers to the increasing integration of economies around the world,
to the movement of people (labor) and knowledge (technology) across
international borders.
Regionalism is the actions taken by governments to liberalize or facilitate
international trade on a regional basis (free-trade areas, Free Trade Agreements, Customs unions ...).
Today more than 400 Regional Free trade agreements are in force: Free trade agreements (FTA) and partial scope agreements account for 90%, while
customs unions account for less than 10 %.
Example of the course (Globalization):
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