Trade liberalization

Trade Liberalization: Perspectives of developing and developed countries

Introduction

The concept of Globalization and trade liberalization is so firmly entrenched in modern economic vocabulary that only one review of interpretations of this term cannot clearly differentiate it from social factors and its impact on them. It is actually said about Globalization and trade liberalization as a new stage of crystallization liberalization of world trade that there are other arguments in favor of the beneficial effects of trade liberalization. It is strategically necessary for the development and growth of all the countries irrespective of their financial status. Open economies have proved their superiority over the nations engaged in protectionist policies. Many developing countries have tried to pursue a policy of import substitution in local products, but quickly found that this leads to a hopeless backwardness of the country with an open economy. However, free trade is but one aspect of Globalization and trade liberalization as stated earlier (Goldin & Knudsen, 1990, pp 240-300).

Discussion

The growing interdependence of countries resulting from the increase in international trade and the expansion of its scope, encompassing not only the exchange of goods but also services and capital, between the developing and developed countries.A cultural shift is the most significant feature of globalization and trade liberalization. Analysts view Globalization and trade liberalization as a new form of economic ties, in which the export of lifestyle takes place. Indeed, Globalization and trade liberalization has made possible the transfer of phenomena in short-time, something from country to country general use of surrogates, models to masses and their behavioral patterns. Globalization and trade liberalization has nothing to do with the development of a culture that has an absolute value in international relations among nations. The impact of certain culture on the overall world decides the power of that country. Usually the developed western countries have that power. For e.g. America has a dominant position in four crucial areas of global power: military, economy, technology and in culture, therefore, the power of America in the globalized world is at maximum (Thirlwall & Pacheco-López, 2008, pp 118-180). From this perspective, it is interesting to know about the features of inter-country relations phase of Globalization and trade liberalization. The cultural stereotypes and information model and induce economical activity, consumption and use of goods and services in almost all countries of the world. This has created a new scheme of economic trade and commerce.

The passage of international trade to global trade has been one of the most significant events in the economy in recent years; the volume of international trade has been rising every year since 1992. Although, the share of developing countries is rising, but financial wealth is going to developed countries.

International trade began with the trafficking of species, gold, silver and precious stones from there transport and merchants, but it was the industrial revolution (which brought the steam engine, mass transportation and mass production) , which won a continental and intercontinental scale of ...