What Is the Relationship Between International Trade and Globalization?
The globalization of trade means that with the development of science and technology and the increase in the degree of openness of countries to the outside world, the scope, scale and degree of international exchanges in the field of circulation have been strengthened. The premise of trade globalization is the global spread of technology. Based on the development of international division of labor, multinational corporations have diffused some mature technologies and related technologies to various parts of the world, and strengthened economic relations between countries, which has led to the adjustment of industrial structures worldwide. Gradient transfer. Developed capitalist countries use multinational corporations' cross-investment, corporate mergers, etc. to allocate resources on a larger economic scale, develop markets, update technologies, and optimize and upgrade industrial structures. Low-level industries are transferred to developing countries, and the need to exchange products and production factors between countries is greatly increased. With the increase in the number of countries joining the regional group, the scope and scale of global trade have expanded, and new and more convenient and flexible trade methods have emerged. The trade links between countries have become increasingly deeper, and countries' dependence on export trade has also increased. Constantly improving.
Globalization of trade
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- Globalization of trade
- With the accelerated development of global trade in goods, services, and technology, economic globalization has promoted the formation of the world's multilateral trading system, thereby accelerating the growth rate of international trade, promoting the development of global trade liberalization, and making Canada
- Members of WTO organizations regulate their behaviors with uniform international standards.
- Internationalization of production
- Productivity, as the fundamental driving force for the development of human society, has greatly promoted the expansion of the world market. The scientific and technological revolution marked by the Internet has reduced the distance between countries in time and space, promoted great changes in the structure of world trade, and promoted the cross-border flow of production factors. It not only puts forward internal requirements for production beyond national boundaries, but also for globalization. Production preparation conditions are the fundamental driving force for economic globalization.
- Financial globalization
- A worldwide network of financial institutions, a large number of financial services are carried out across borders, and cross-border loans, cross-border securities issuance and cross-border mergers and acquisitions have been established. The world's major financial markets are interconnected in time and prices are linked to each other, and trillions of dollars of transactions can be achieved within seconds. Especially the foreign exchange market has become the world's most liquid and all-weather market.
- Globalization of technology
- It refers to the optimized allocation of science and technology resources in various countries on a global scale. This is the latest expansion and rapid progress of economic globalization. It is manifested in the large-scale cross-border transfer of advanced technology and research and development capabilities, and cross-border joint research and development exist widely. Taking the information technology industry as a typical representative, the technical standards of various countries are becoming more and more consistent. The giants of multinational corporations have controlled the development of the industry and obtained a large amount of excess profits through the use of monopoly technology standards. The four main carriers of economic globalization are all closely related to transnational corporations, or transnational corporations are the promoters and bearers of economic globalization and their carriers.