Globalization (Term Paper)
Globalization means the worldwide movement toward economic, financial, trade, communications and ideas in one global marketplace. It refers to economic globalization. Under globalization, people around the world are more connected to each other than before and information and money flow more quickly than former. Globalization does not only affect the international trade, but also affect the cultural exchange.
Nowadays, international business and globalization seem to be a trend. The advantages and disadvantages of globalization have been heavily debated in recent years .Some may claim that the globalization causes the job loses, low wages and exploited workers. On the other hand, others may argue that the …show more content…
Globalization and Trade war
Nowadays, the trade gap between different countries has become a serious issue in the world. . For instance, there is a huge trade gap (26.8 bio$) between China and the US. In order to narrow the trade deficit with china, US tries to impose hefty import duties or other penalties on Chinese goods such as American congressman proposed in Congress through "Shurmer - Grahame Bill for amendment" requests commodity which come from china to levy 27.5% punitive customs duties (i.e. retaliatory tariffs).
Besides, US requests China to open its economy by adopting a more flexible exchange rate policy, and make yuan appreciating more fast via WTO pressures. In return, if China rejects its requests, US would use trade war as tools to decrease the trade deficit and partners with friendly countries such as UK to impose economic sanctions even embargo to against China. America worries that the fast developments of China will affect its international influences and position. Thus, US is now using economic statecraft or some mechanisms to stop Chinese developments. Therefore, Trade war and tariffs war is unavoidable under globalization.
Globalization and bankruptcy
Although Globalization encourages free trade among countries on an international level, there are negative consequences in poor countries. The