International Economics - Essay Example

vements of goods and services from one country to another, globalization has made a revolutionary changes in the market especially when it comes with issues related to the burgeoisie or the employer and the proletariat which pertained to employees (Steger, 2003, p. 37). As a result of changing the traditional way of conducting business and employment under the era of globaliztion, the culture and traditions, social, and economic condition within a society changes. There is a positive and negative impact associated with globalization.

The positive impact includes the fact that globalization open a lot of new business or employment opportunities to people living in developing countries. However, people who live in developed countries will also suffer from the consequences of transferring some of the available jobs to low-paid competitive individuals who are working in developing countries. Specifically the shift from a pure national economy towards a more globalized economy is possible through continuous global trade, outsourcing of goods and services, foreign direct investment, the use of information and communication technology, migration, and the international capital flows (Friedman, 2008, p.

49; Bhagwati, 2004). For this reason, Lopez (2000) stated that the “economic power of a country is no longer strongly associated with political power”. In relation to globalization, this study will discuss the main purpose of establishing the world trade organization and GATT. As part of going through the main discussion, the current and most recent trade negotiations at the world trade organization will be identified followed by assessing its economic benefit as a result of a successful conclusion.

In line with this, the economic importance of encouraging fair price competition in the market, strategic ways on how the implementation of GATT rules were able to encourage fair price competition will be tackled in details. Globalization is “a process of interaction and