International Trade and Globalisation Essay Example | Topics and Well Written Essays - 3500 words

International Trade and Globalisation - Essay Example Overall levels of trade barriers have declined in recent decades, largely due to international negotiations (Reinert 2012). 11 This paper labors to discuss the concept of international trade among trading countries and how such countries benefit from the Principle of absolute advantage and comparative advantage, intra-industry which arises when the country simultaneously imports and exports similar types of goods or services has also been highlighted. A detailed discussion of the trade policy analysis has been shown in this paper mainly on the impact of imposing and removal of trade tariffs on the welfare of producer, consumer, and the government, who benefits and who loses. International trade is a term used to refer to the exchange of goods and services among the countries of the world (Reinert 2012, P. 30). International trade does not only involve exchange of goods such as steel, automobiles among others it also include exchange of services for example financial services, and engineering services among other services. International trade in goods and services is playing contributes a lot in development of the world economy. International trade is one of the four realms of the world economies the other three include international production, international finance, and international development (Reinert 2012, p 30). Thus to develop the worlds economies and to improve welfare and living standards of everyone, students and professionals must have a good understanding of the international trade. According to Giddens (1999) globalization can be defined as conceptualized in social, cultural, and political, not just economy. Globalization is the integration of economy activities such as international trade, development in financial and currency system, and labor outsourcing, which were supported by technological changes (Valacich &