ECONOMIC GLOBALIZATION
Economic globalization is the spread of trade , transportation and communication
systems on a global scale in the interest of promoting international commerce .
When talking about economic globalization , there are two different types of
economies you should know about : protectionism and trade
liberalization .Protectionism is protecting one’s economy from foreign competition
by creating trade barriers while trade liberalizations is the act of reducing trade
barriers to make international trade easier between countries . These trade barriers
are usually tariffs which are required fees on imports or exports . Canada’s tariffs on
food is a good example of protectionism because Canada places high tariffs on foods
like dairy products but on the other hand if the trans pacific partnership and the
comprehensive economic and trade agreement bet ween Canada and the
European union is established . Canada would achieve trade liberalization when it
comes to the importing of food . Science the world that we live in is globalized , the
majority of the country tends to side more with trade liberalization than
protectionism . There are various ways a country can make trade easier with other
countries
Free trade , which is the trading of goods or services between two or more countries without tariffs or taxes is one of the
many ways a country can make trading easier . On march 11,2014,Canadian prime minister Stephen Harper and the south
Korean president signed the Canada Korean free trade agreement which made Canada remove 98.7% of its tariffs on
imported goods from Korea like Kia and Hyundai cars while Korea are removing 98.2% of its tariffs from Canada, United states
and Mexico are part of the North American Free Trade Agreement (NAFTA) which makes them a trade bloc because of the
goods and services that can easily be exchanged to and from each country’s borders . NAFTA was first created in 1989 with
only Canada and the States as trading partners but on January 1, 1994, Mexico joined, creating the official NAFTA imported
Canadian goods like beef . Another way to make trade easier is to create a Trade Bloc which is an agreement between
governments to reduce or eliminate trade barriers .
.Since NAFTA is a free trade agreement and also a trade bloc, it eliminates trade barriers between the North America
countries to increase investment opportunities and establishes procedures to reduce trade disputes . Recently on February
20, 2014, a gathering was held in honor of the 20th anniversary of NAFTA and one of the big discussion topics that arose were
about the Keystone XL Pipeline . The creation of NAFTA has caused manufacturing jobs from developed nations like Canada or
the United States to transfer to developing nations like Mexico in order to reduce the cost of products because developing
nations have less government regulations and cheaper labor. This is called outsourcing and to give you an example, the United
States outsourced approximately 791,000 jobs to Mexico in 2010 and it was quite easy to transfer all these jobs because of
free trade agreements and trade blocs. The world bank, World Trade Organization and the International Monetary Fund are
other significant organizations when it comes to trade. All 3 organizations were created because of the Bretton Woods
Conference that was held from July 1-22 in 1944 but the World Trade Organization was officially established on January 1,
1995 when it replaced the General Agreement on Tariffs and Trade(GATT). The World Bank, WTO and the IMF have many
similarities when it comes to their intended purposes. All the support the expansion of International Trade discourage
protectionism and prevent conflicts that may lead to another world war . But there are also significant differences too. The
World Bank inceases growth and reduces poverty in developing countries in a variety of different ways. An example is their
investment in education since 1962 in developing nations like Bangladesh, Chad and Afghanistan. The IMF provides shot term
loans to countries when an emergency occurs like when Yemen received 93 million from the IMF ON April 5, 2012 due to
Yemen’s ongoing struggle with terrorism. The WTO deals with the rules of trade between nations settles trading disputes and
