PRODUCTION AND COST - Term Paper Example

ystems continue to drive costs of cross-border flows down, local and national economies continue to integrate, gradually or in shocks, into global economy. Clearly, present increasing integration into global economy in developing and developed nations alike is not a simple and direct result of communication and technological advances. This is, rather, a complex mosaic shaped by processes, institutions, and, more significantly, players. In present argument, a statement is made about globalization as a historical process which has immensely shaped international trade and global economy.

Globalization is first discussed as an integrating process for national economies, leading to further integration of world’s economy as a whole. Then, a discussion of wider implications for globalization follows. Yet, since processes are not independent but are created, driven, or motivated via institutions and governing laws and rules, significance of international law, more specifically international economic law, is explored. Rules, laws, and regulations of World Trade Organization (WTO), as a unique international trade body, are given particular focus.

[T]he process of greater interdependence among countries and their citizens. It consists of increased integration of product and resource markets across nations via, trade, immigration, and foreign investment – that is, via international flows of goods and services, of people, and of investment such as equipment, factories, stocks, and bonds. It also includes noneconomic elements such as culture and the environment. Simply put, globalization is political, technological, and cultural, as well as economic.

(Carbaugh 2) As such, globalization accounts for increasing integration of national economies and, further still, for greater efficiencies in production as more and more jobs are outsourced globally (Carbaugh 6) and as more products are increasingly manufactured abroad (Carbaugh 14) for a host of reasons, not least lower