The globalisation of trade Literature review Example | Topics and Well Written Essays - 5000 words

The globalisation of trade - Literature review ExampleFor example, Starbuck was one American company which had coffee tree shops virtually in every corner of America in the beginning the introduction of globalization. Since their operations were saturated in America, they struggled a separate to find enough office in America for expansion. Globalization helped them to expand their operations to overseas countries. In short globalization helped international or cross cultural trade to enlarge a lot. Globalization of trade brought many opportunities and challenges. Some people argue that international trade helped countries to attract much foreign direct investments so that their economical system started grow rapidly. They cite India and china like countries as examples to show how well a country can utilize globalization opportunities. In fact China opposed the global economic order, political order and the major global institutions such as the IMF and the World Bank before t he reforms started in China (Overholt, 2005, p.3). However, they apace realized the possibilities of global trade and globalization. It should be noted that these two most heavily populated countries in the world have been struggling for growth before the introduction of globalization. Their huge population size was a curse or barrier in front of their struggle for growth. However, globalization helped these countries to convert this population barrier into a blessing. In other words, these countries are currently the providers of manpower for international market in which manpower shortage is a big problem. During 19972005, Chinas average annual growth rate in real GDP was 8.9%. During the forecast period of 20052010, it was assumed that the PRC continued its historical growth arch of 8.9% per year (Mai et al, 2010, p.5). Moreover, the PRCs exports increase by about 46%and imports by about 45% relative to their respective baseline levels in 2010(Mai et al, 2010, p.7). check to Albert Keidel (2008), Chinas economy will surpass that of the United States by 2035 and be twice its size by midcentury (Keidel, 2008). Indian economy also showed similar trends during the last few decades as a result of globalization of trade. The globalization of trade has assured the place of multi-national. It has been suggested that the role of such firms is to generate wealth, create ply and raise the model of living in the countries in which they operate. However, critics of globalization suggest that multi-national companies often exploit physical resources and take advantage of labor in countries where well-grounded requirements may be less stringent than in their own countries. This paper critically discusses this statement providing arguments for and against the globalization of trade, taking India and China as major examples. Overview of economic growth in India and China It is often said that global wealth is currently shifting from the less heavily populated Americ an and European regions to the more heavily populated Asian region because of globalization. The above argument seems to be correct when one would consider the economic statuses of India and China before the introduction of globalization. The standard of living and per capita income of Indians and Chinese people have increased a lot in the past few decades. Moreover, unemployment problems in these countries were come down a lot in the recent past. It should be noted that international