International Trade and Globalization Essay

harmonise to Hill, globalization refers to the shift toward a more integrated and interdependent world economy (2009). Globalization has several facets, including the globalization of markets and the globalization of production. Globalization of markets is to the merging of historically distinct and separate national markets into one huge global marketplace. Globalization of production is to the sourcing of goods and services from locations around the globe to entertain advantage of national differences in the cost and quality of factors of production (such as labor, energy, land, and capital) (Hill, 2009).There argon several traditional international workmanship theories that would support the creation of globalization. The first theory is free trade that refers to a situation in which a government does not attempt to influence through quotas or duties what its citizens discharge buy from another country or what they can win and sell to another country. Another theory is merca ntilism, which is an economic philosophy advocating that countries should simultaneously encourage exportings and caution imports. The final theory is the theories of Smith, Ricardo, and Heckscher-Ohlin.Smith, Ricardo, and Heckscher-Ohlin show why it is beneficial for a country to engage in international trade even for products it can produce for itself. According to Adam Smith, countries should specialize in the production of goods for which they have an absolute advantage and then trade these good for the goods produced by other countries (2009). Heckscher-Ohlin theory predicts that countries will export goods that make intensive use of those factors that are locally abundant while importing goods that make intensive use of factors that are locally scare (2009).Finally, Ricardos theory suggest that countries should specialize in the production of those goods they produce most efficiently and buy goods that they produce less efficiently from other countries (2009). There are two major factors that drive globalization. The first driver is the decline in barriers that allow the free flow of goods, services, and capital that has occurred since the end of World War II (2009).For example with the decline in barriers, countries can export merchandise freely without any disruptions in hipments. During the 1920s, many of the worlds nation-states erected formidable barriers to international trade and foreign direct investment (2009). Many of the barriers to international trade took the form of high tariffs on imports of manufactured goods (2009). The second driver of globalization is engineering science diverge (2009). For example, the constant change in technology allows companies the ability to produce more, which in turn allows other countries to participate the building of developments.Another example is throughout time, the get on with in technology permits communication to be more advanced by allowing people to access the Internet and the World Wide Web. Th e final example of technology change is the change in transportation. The change in technology such as commercial aircrafts and freighters that are tractor trucks and cargo ships that allows shipments to be packed in containers and shipped crosswise the world. The effects of globalization have impact to the military machine, especially during a time of war. Armed Forces Network (AFN) is the main source of television communications throughout Europe.AFN supplies profits to the military in Afghanistan and Iraq so the troops can unwind and watch television. AFN provides cross-border flow of television services. Another effect of globalization that impacts the military while organism deployed is food services. Food that the local nationals transport to different military posts in Afghanistan is shipped in from other countries and cross through Iran. The third effect on the military of globalization on the military is the acts of violence against the military overseas.A poor country su ch as Afghanistan, rely on their local grown produce but instead is being taken over by products foreign product verses using the locals products. The final effect of globalization that impacts the community is the problem of outsourcing jobs. Americans have a high unemployment rate due to the lack of jobs in the market. The military is over strength because of citizens not able to find work. In the deployment zone, many civilians are risking their own lives to work as a contractor for the government because they cannot find work.