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International Transport System in Maritime - Case Study Example

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This paper "International Transport System in Maritime" discusses how the demand for transport has been affected by the globalization of services and manufacturing. It mainly highlights the increase in demand for transport as industries continue to become globalized…
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International Transport System in Maritime
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Download file to see previous pages This aspect of the maritime transport industry has been discussed in the paper. Fragmentation of the production process is also highlighted as a major factor in increasing the demand for transport.

Globalization is the process through which production, trade, governance and many other aspects of life have continued to be standardized across the world. Globalization has also led to interconnections of countries through various air, sea, road and rail networks, which have facilitated the easy movement of people and goods. Manufacturers and service providers have spread their operations globally. They have shifted production from the industrialized countries to take advantage of cheap labor and the unexploited raw materials for production in the less developed nations. The services industry also expanded to provide services in developing countries. All these global shifts in a production led to the globalization of services and manufacturing, which on the other hand affected the demand for transport as traders supplied the industrial products and services to markets away from the industries, locally and abroad. This paper presents a critique of how demand for transport has been affected by the globalization of services and manufacturing.
Developments in the transport sector of many countries have been facilitated by industrialization. Transport is significant for the delivery of raw materials to industries as well as the distribution of the finished products. Manufacturers focus on good transportation services in a country as one of the factors that are necessary for the location of an industry. Economies are therefore compelled to ensure that the transport sector allows effective transportation of products to markets, transportation of labor and raw materials.

Multinational corporations operating across borders need effective international transport for the effective delivery of services. There has been an increased amount of cargo being traded between countries as economies maximize in the exportation of what they can produce best.  ...Download file to see next pages Read More
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