Global / International Issues - Essay Example

It is the argument from different economists that shapes the debate surrounding the inhibition of international trade in effect causing harm to the world economy. Protectionism limits the level of trade between nations and is linked as a cause for retaliatory actions amongst countries to counter moves made by countries promoting protectionism measures (David, 2011). However, protectionism is beneficial when viewed on the copyright protection perspective and the liberalization of restrictions on the distribution of foreign goods and importation as experienced by China upon joining the World Trade Union.

Protectionism restricts the flow of goods, services, and human capital in avoidance of flooding of local markets with counterfeits. Protectionism influences international trade through the protection of piracy and counterfeits that destroy the performance of different products with the best example provided with Microsoft Software sold against the consent of the parent company. Such products are availed to the market at lower prices than original copies and this dents sales and profit margins recorded.

Protectionism is an important concept that limits international trade on one hand and promotes it on the other (David, 2011). Companies are driven by different forces in their decision of expanding into the global market with the first force being the availability of a wider market. International operations translate to a potential wider customer base and this could translate to increased profitability from a company’s operations. The growth of any business organization revolves around access to a ready market and this creates a potential conflict for business operating nationally due to increased competition fighting for the same customer base.

This stimulates a business organization to venture into a global market with an objective of increasing its customer base. The second force driving internationalization of business organizations is