International trade has been around for a long time. Countries in the 13th century traded spices for example. Since World War II there have been advancements in technology which has reduced the costs of trade (IMF). With advanced technology, it is easier to trade and communicate through out the world. Technology has experienced rapid growth in the international trade and investment. In the 21th century, globalization is now not only a notion it is a phenomenon but the question is, is it a threat or an opportunity?
Globalization is the expansion and intensification of linkages and flows, of people, goods, capital, ideas, and cultures across the borders. It is the concept of people working together and helping each other out. Globalization affects every country in the world in one way or another, whether it is positive or negative. Economies around the world have integrated through trade and financial flows. Globalization has been aided the movement of labor, knowledge, and technology across the world.
There are many main factors that lead to the growth of globalization, one of them being trade. For centuries countries have engaged in trade. One country may produce a material that another either can not produce or just can not produce as well as the other, so they trade materials. The export of manufactured goods rose from the year 1971 to 2007 and continues to grow (Nicholas). It is easier for countries to trade than it was 20 years ago because the barriers on international trade have been lowered through the General Agreement on Tariffs and Trade (GATT).
Another factor witch lead to globalization is financial flows. Foreign direct investment has grown. The movement of money or capital from country to country has becom ...