International Economic Essay

globalization process refers to the orbitwide incorporation of economic, cultural, political as considerably as religious and social arrangements. There ar other definitions with the IMF referring it as the growing economic interdependence of nations globally through improving measuring stick and range of inter- sphere passel, free inter subject capital flows and extensive widespread of scientific knowledge. Economically, its defined as the union of prices, mathematical products, wages as intumesce as interest rates and margins to fit in the developed countries standards.Globalization has various advantages such as appearance of global production, marketplaces as easy as wider access to a variety of internationally upraised goods for consumers and producers. Secondly, there is effect of international economic markets and greater access to external funds for local, national and other borrowers. Thirdly, its economically beneficial in t wear there is science of an internat ional common market depending on the autonomous exchange of commodities among nations.Fourthly, there is a souration of world political government that maintains the affinity between nations and ensures the freedom arising from social and economic internationalization. In addition, there is a greater information flows between different countries hence enhancing communication, mend promote intercultural contacts and adoption of other cultural ideas hence promoting the adoption of new engineering and practices thence encouraging unity and harmony. Finally, it encourages global cooperation which assists in solving environmental challenges such as water and air pollution, over fishing of the seas and humor change.Similarly, it encourages health competition between nations and industries hence ensuring efficiency and effectiveness in the production of commodities. This ensures that goods produced are of gamy quality and charged pretty. This ensures that consumers are non exploi ted by producers who may produce fake goods and charge high prices. In the wake of internationalization, productivity is essential so as to realise the international demand for goods and services and remain competitive in the world market.At the same time, nations which experience economic growth are fairly placed and their commodities are highly demanded in the world market. It also ensures that locoweed cope with others effectively and high-octanely by meeting the required standards as they can afford the current technology and production techniques. Tariffs refers to a tax revenue on distant goods once they are imported i. e. immediately on arrival at the port, the custom officer examines the goods and imposes a levy as per the custom formula.There are various types of tariffs such as an ad valorem tariff which is a percentage of the value of a commodity composition specific tariff is charged on a commodity as per its weight, volume or surface, but not to its value. It sh ows galore(postnominal) units of a bullion are charged per amount or area. There is also a revenue tariff that refers to a group of levies imposed mainly to march on income for the government while protective tariff is mainly imposed to temporarily raise the prices of imports while protecting the local or domestic industries from foreign competition and dumping of unwanted commodities or imports.However, they raise the price of a commodity as per the imposed levy, hence exploiting the consumers of the good or manufacturers who utilise as a raw material, at the same time ii can lead to cunning war when it doesnt favor the wonderful country. Trade blocks are formed to minimize or eliminate tariffs against trade with each other and impose protective tariffs on imports outside the block, while custom union has a common external tariff as per agreed strategy the member countries divide the revenue from the tariff on commodities entering the union among themselves.Economic theories argue that tariffs are unnecessary opening of consumers sovereignty and the rule of free market. They argue that it is unjust to the consumers and generally adverse for a nation to protect a non performing diligence, its fitter to let it collapse and give way a new efficient one to grow in its position. Others claim that protective tariffs that assist in protecting infant industries permit them to develop and withstand competition in the international trade once they expand their size.Similarly, tariffs can be utilize as a political tool to define the boundaries of an independent country as absence of tariffs establishes a free market system with no borders. However, it has been argued that tariffs assist developing countries as they are easy to collect, and these countries lack institutional capability to efficiently raise revenue and sales taxes.Non tariff bulwarks to trade are ways to avoid free trade regulations such as those of European Union (EU), World trade organization (WTO) etc. hat restrict imposition of tariffs such as anti dumping regulations and counterfeit goods measures, which have similar results as tariffs though imposed in supernumerary conditions. Other non tariff barriers are in form of processing or production requirements of a commodity with an import ban imposed on those goods which do not meet the requirement or condition. Some trade barriers are openly allowed in very limited conditions, when reckoned important to fortress health, safety, sanitation or depletable resources.Non tariff barriers to trade take many forms such as state subsidies that favor an unmarried or industry hence disadvantaging others subsidizing, therefore becoming more competitive in the market as well as national regulations on safety, health, employment and product classification which tend to discriminate some business while favoring others.Quotas are also form of barriers as an industry cant produce more than the recommended quantity, hence regulating its production capacity and trade in general. imilarly, foreign exchange control and multiplicity forms a non trade barrier as countries or industries that do not access it cant recruit in foreign trade easily, hence it acts as a form of trade barrier as well patents and copyright laws that give an individual or industry the ultimate powers to produce a commodity alone, therefore regulating trade. Others include bribery, corruption, unfair customs procedures, suppressive licenses, import bans and restrictive import regimes which act as an obstacle to trade.