Wednesday, April 20, 2011

World Globalisation

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Globalisation refers to the economic integration between Countries leading to the emergence of a single world market, characterised by a shift from National to World economy with free movement of goods, services, financial capital, skills, ideas and people across geographic and political borders.

International bodies such as WTO and IMF and Regional trading blocs such as NAFTA and APEC have helped free up world trade by reducing trade barriers (tariffs/subsidies) and by deregulation of world financial markets, and now these groups seeks to further develop the world through reducing poverty across the world.

International organisations such as the WTO, the IMF, the World Bank have become increasingly important to the growth of globalsation as they provided rules for trade and investment decisions.

Custom Essays on World Globalisation

WTO began in 15 and replacing GATT and is the most important multilateral trade treaty governing rules of world trade, settling trade disputes between Nations and monitoring developments in world trade through regular rounds of trade talks where Nation discusses trade issues such as the Uruguay Round talks on reducing protection levels on Agricultural products.

IMF is an cooperative institution with more than 18 voluntary members, IMF role is to provide a forum to maintain stable International currencies other roles include privatising Government enterprises, deregulating financial markets and assisting countries in troubled periods. IMF assists members through lending money to members in return debtor countries undertakes economic reforms, also provides specialised technical assistance and training courses.

World Bank is the world’s largest source of developmental assistance, and uses financial resources and staff to help developing countries initiate and sustain growth also helps countries address broader issues such as Countries human and social development and comprehensive development framework.

Regional trading blocs such as EU, NAFTA and APEC an group of nations has become important as trading blocs facilitated Nations to more freely trade with each other.

Economic Integration in Europe dates back to the late 140’s through the development of the first trading bloc in the world led by West Europeans such as Germany, France and Italy.

EU is structured like an Parliament and has adopted an single currency (EURO) which benefits the EU members as it allows reduced transaction costs when trading and greater economic stability.

NAFTA is the world’s largest Free Trade area with 400 million people producing nearly US$8 trillion worth of goods and services, NAFTA was formed in 1 by US,Canada,Mexico in response to Europe’s tighter unity in trading

NAFTA integrates North American market by eliminating Tariffs and other barriers to benefit from increase in trade and investment enabling US/Canada to access Mexico to use low employment market where Mexico also gains benefits as they have access to Markets of USA/Canada and receives more investment and dramatically reduces unemployment rate.

APEC is an multi-lateral regional trade forum supporting the WTO and directs common trade policy issues and develops mechanisms for closer trade and investment links in the Region.

APEC is consisted of 1 countries in different levels of growth phases members spread all across Asia with other members like Australia and USA. APEC accounts for 50% of World GDP and 40% of the World Trade, 75% of Australian goods and exported to members of APEC therefore being an important trade bloc to Australia.

In conclusion trading blocs and international Institutions was and is still the main force behind globalisation’s fast growth and development which in return helps countries over the world through easier access to the world market and deregulates strict investment laws allowing Foreign Direct Investments to be easier.

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