Impact of International Trade on Economic Globalization

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International trade has directly brought massive economic interests, including achievements of wider sales, investments and labor markets around the globe, acquisitions of rich profits for developed countries, and promotions of inter-country economic and technical corporation(Hill, & Jain, 2000). For the developing countries, international trade can make them integrated into economic globalization quickly, and gain enough sources of money and technology in and international economic cooperation, get help and cooperation in manufacturing and operation, thus raising the range of national economic and technological progress (Narlikar, 2003). Firstly, International trade and economic globalization enable developing countries to draw more foreign …show more content…

Thirdly, International trade contributed to the development of multinationals in developing countries, making their competitiveness increase gradually in the world market. For instance, according to Cendrowski (2015), he claimed that, 24 MNCS of the Fortune Global 500 manufacturing automobiles have invested in the joint ventures of China. Fourthly, WTO is one of the most important international economic organizations, it has 162 members, 98% of the total members of the global trade, it can also be called the "economic United Nations," (Agriculture.gov.au, 2016). WTO is responsible for: Providing a forum for member countries to negotiate trade rules. Providing a mechanism for handling trade disputes. Monitoring and reviewing domestic trade policies of individual …show more content…

For the purpose, no matter which countries engaged in free trade, it has include developing countries and developed countries. Both of them, the main benefit of free trade is that manufacturers can more easily enter the larger global market. For instance, for developig countries, such as China, China has signed the free trade aggrement with Australia at 17/06/2015 (Australia-China Free Trade Agreement 2015). From the Finance Sina Report(2015), it has discussed that after China sign the free trade aggrement with Australia, it takes dramaticly change compare with China before. This free trade gives about trillion of Australia dollar infrastructure construction chance to China. That means this free trade agreement bring in China some good chance to take better science technology and considerable revenue. Due to the economy of a country, join into this free trade market will implies some profits from globalization to distinguish the labor force. Otherwise it has under intensifying international competition in the global market. This depend on the international specialized production and this foreign competing will pressure on local production firms. Because of that, the productivity of manufacturers within the country will be more efficient, and customers can have a larger range of choice of cheaper products produced at home and

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