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International Trade The World Appears To Be Term Paper

International Trade The world appears to be shrinking as the global landscape continues to be developed by technology and new ways of communication. It is inevitable that this new intimacy will have, and has had, a significant impact on the economies of all nations. The purpose of this essay is to discuss the impact of globalization and how it can be used for benefit and gain competitive advantage in virtually any industry or market. This essay will discuss the evolution of the global economy before using a real world example to compare and contrast the differing effects that this phenomenon is manifesting in today's fast paced and hectic world that depends on the goods and services that economic markets provide for humanity.

Globalization and The Drivers of Globalization

Mourdoukoutas (2011) explained that the global nature of the market economies contain great benefit when used in a purposeful and practical manner. He wrote" globalization is all about the efficiencies and opportunities open markets create. Business can communicate efficiently and effectively with their partners, suppliers, and customers and manage better their supplies, inventories, and distribution network. Local producers can sell their products in distant markets with the same ease and speed as in their home country. Essentially globalization is the ability to bring together far and distance places together yet share an economic interest in trading for goods and services.

Globalization is often noted by certain drivers. These drivers signify how these markets are created and inspired. While there are endless ways to drive a market, certain trends have shown that there a few of these forces that impact global economies more than others. Market drivers, cost drivers, government drivers and competitive drivers are the most noticeable and observed types of these drivers that are present in today's economic environment.

Market drivers are such things as customer needs, the increase in global customers and the availability...

Cost globalization drivers deal with the technology and sourcing efforts that are inherent within markets and have a strong presence in computers and pharmaceutical and medical markets. Government drivers are more nuanced and are contained in creating laws and standards. Competitive globalization drivers are results of trade surpluses and deficits that is spurred on by nations attempts to gain power over one another through market exchange.
The Changing Nature of The Global Economy

Taylor (2013) noted that international trade systems are forming into stronger and smoother chains of exchange. He wrote "the overall pattern seems to be that participation in global value chains does in fact typically benefit economic growth and development, but there are a bunch of potentially difficult and important issues about treatment of workers, environmental effects, interactions with local institutions and the host government, and so on." This idea reveals the true challenge of the global economy and how they are essentially are rooted in human interaction and the ability to compromise and cooperate to make things work and keep important balances within the system.

The new liberal landscape and world political scene giving more and more power to the individual is at the heart of the continuing evolution of these market forces. Once again the human element becomes extremely important in understanding how this effect is truly playing out. The crossing and mixing of the many cultures and ideas throughout the world maintain a continual changing environment where mutual dependence is discovered through economic means created by demands for new experiences and products.

India vs. United States

The impact of globalization on both the United Sates and India demonstrates how this trend can change the way people live and do business. The business between these two countries…

Sources used in this document:
References

Bera, A. & Inderfurth, K. (2013) U.S.-India economic relations trade potential into reality. The Economic Times, 22 Aug 2013. Retrieved from http://articles.economictimes.indiatimes.com/2013-08-22/news/41437316_1_ge-india- trade-potential-us-india

Lowell, M. & Thakkar, B. (2012). The Impact of Globalization on Cross-Cultural Communication, Globalization - Education and Management Agendas, Dr. Hector Cuadra-Montiel (Ed.), ISBN: 978-953-51-0702-6, InTech, DOI: 10.5772/45816. Available from: http://www.intechopen.com/books/globalization-education-and- management-agendas/the-impact-of-globalization-on-cross-cultural-communication.

Mourdoukoutas, P. (2011). The Good, The Bad, And The Ugly Side of Globalization. Forbes, 10 Sep 2011. Retrieved from http://www.forbes.com/sites/panosmourdoukoutas/2011/09/10/the-good-the-bad-and-the- ugly-side-of-globalization/

Taylor, T. (2013). Global Supply Chains and the Changing Nature of International Trade. Economists View, 5 Sep 2013. Retrieved from http://economistsview.typepad.com/economistsview/2013/09/global-supply-chains-and- the-changing-nature-of-international-trade.html
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