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Requirement
1- Write a report on "INTERNATIONAL TRADE" in around 2000 words with reference to Havard style of writing.
Solution
Introduction
There has been vast change in the global economy after the emergence of globalisation and liberalisation. There are both positive and negative impacts of this culture in the world economy and it has become the two sides of the coin. There will be a discussion on one of the articles published from financial times. There could be a significant impact of this discussion as there could be useful insights into the impacts of the economy. There will be useful frameworks like Ricardian which could help to understand the mentioned aspects of the statement from financial times. The second aspect of the statement will also be covered with the major discussion on some of the burning topics. The concept and deglobalisation in the economy will also be part of the discussion.
First aspect; Emerging economies into the institutional framework
The first aspect of the article is about increasing disparities in the income of some countries and each and both of the countries. There are several things which are being managed under globalisation. As opined by Brenner (2017), two major things are considered under factors of production. These are capital and labour which are said to be the reason for the distribution income. It has always become a major concern for companies when they are emerging in the new markets. The major factors of production labour and capital vary among the countries. There are many companies like Tesco that are in the global market. They are evolving with the demand of the people and the buying power of the customers. there could be a major impact on the companies when they use the resources of any other country (Rodrik,2018). There is a lot of investment required for the emergenceand this could be a matter of differentiation. For example, in India, there are labours available at a low rate. Therefore, the companies move to that area as there is a comparatively lower level of acmepressure, the same is not available in other Asian countries like Thailand, Malaysia in which companies like Tesco operate (Lechner and Boli, 2019).
This could be understood better by the Ricardian framework. It has been developed by an economist in English political called David Ricardo in the year 1817. He has strengthenedthe free trade case which was modified in the theory, this could help to manage the circumstances of the trade and its impact company. there is a difference in the sources of trade in the countries. This brings the gain for the company from the trade. According to Kanbur(2015), there could be a useful impact of this fur on the companies and the harmful one for the trade supporters. For example, one trader found iteasy to trade-in another countrybecause of the less tariff. Thus, there could be an impact on the company as there couldbe fewer taxes to pay off. However, the particular country is being affected by the lower-income from tariffs which is the major source of income for the company. One trader might be affected by the fruitful trade but the resources of that country are diminishing and there be exploitation of the sources this has the social impact (Galbraith, 2016). However, this theory sounds different from this concept. This is because it supports global trade but has discussed the two sides of the impacts. It has always being a delightful thing for the companies when they involve in the prices of globalisation. This is because it creates sources of income. In case if the parent company is not performing better there could be income from others or the subsidiaries. This has become the most prominent thing for the company (Yay et al, 2016). They emerge in the new market after making a thorough research of the market.
The Ricardian modelexamines the changes in labour productivity becauseof the change in technology. this has become the majorreason for the economy. The emergingcountries have allowed the foreign direct investment ad has removed the tariffs, after the removal of the tariffsthere could be easy trade and the company could easily enter into the market. On the other hand, there is less technology or the capital-intensive techniques used in the courierswhere the pressure of unemployment in high (Helpman,2016). There could not be an easy impact on this as the country which has adopted the free trade has to negotiate on the terms which are favourable for the foreigncompany, this is because they want the reduction in unemployment which is only possible when there will be job opportunities. Thus, based on this, the countries that have a lower level of employment approaches foreign companies. The Ricardian model has made a focus on labour and technology. It could be said that it one if the major factors that are discussed for the global economy. the productivity of laboursis decreasing because of the use of technology (Ravallion, 2018). There is technology at every level of management. In the coming years, it is going to take the place of top-level management too. This is because the emergence of artificial intelligence is not a new word for the emerging economy. they are now able to make the decisions for the company aboutthe policieswhich need to be followed. For this purpose, there is a panel that decides the best course of action for the company. This could be no done by artificial intelligence. Therefore, the productivity of top-level management is also decreasing because of the use of technology. In the case where there is a need of 40 labours, one technology could do it independently (Antras et al, 2017). Thus, the charges for 40 labours have been demolished and it could be a great matter of concern for the company. This happens because it lowers the cost of production because the cost of 39 labourhas been saved. There is a one-time investment and the technology could provide a long-term benefit for the company. there is a comparative advantage that determines an international trade pattern. This is done between the companies and the approach is made for the country which satisfies the want of the company.
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Second aspect: the world economy at globalisation peak
The second aspect s about the use of the classical or the mercantilist theory. It has been discussed in the previous part that there is a difference in income in the global trading market.As opined by Cabral et al, (2016), this is because of the emergence of technology or the other reasons. There is always a better approach to the economy when they have skilled workers. This aspect of the statement is based on the peak of the globalisation. There is no doubt that globalisation is its peak. The countries are frequently moving their trade barriers which have allowed the companies to directly into the foreign market. This kore speculative and there are many reasons for the removal of the trade barrier (Stijepic, 2017). On the other hand, if the companies or the countries are not found it fruitful for they could setback of the decision. There are many arguments served from the theories which are discussed further.
classical vs mercantilist is one of the theories that could be beneficial to consider in this context, according to the classical approach the economy could be lifted if they focus on manufacturing and the agricultural process. This could be the part of the earlier major times when there was no concept of globalisation and the countries have to tote for employment by their won methods. This could provide the opportunity to create a large number of employees at the same time (Schrecker, 2016). therefore, there was less concern for the monetary facts which could directly increase the income of the nation. It has become a matter of concern for the companies before the globalisation. On the contrary, there is mercantilist which as the focus in the accumulation of wealth. This wealth accumulation is measured in terms of gold and the country needs to think about the gold possessions. The mercantilist was based on monetary matters. The economic thought in the mercantilist concept was about the monetary aspects. On the other hand, the classical one was less dependent on the monetary and in the materialistic facts (Stockhammer, 2015). There has been an important role of several things which are in the globalisation. Thus, the countries are interacting as much as they can be based on the requirement, the countries who want to meet the requirements of agricultural and manufacturing are meetingthesecountries. On the other hand, the countries that want to increase the money matters are managing with the developed countries. There has always been a greater impact on the countries hewn they are emerging themselves in the other market.
The impact of the globalisations and the emergence of deglobalisation could be seen from the America and China trade war. The emergence of the war has begun in 018, June 19 when the china retaliatory tariffs have been imposed on the goods of the US worth $50 billion. China stated that the tariffs of the US has created the trade war (Iosifidiand Mylonidis, 2017). The countries are involved in major activities in which the US exportsmaximum things from china which accounts for 7.2%. there are things like aircraft, machinery, electrical machinery which are traded by the US from China. The trade has started in 1979 in which the countries have signed the bilateral trade document and imports mas exports the things. thus, there was a long time being served in trading activities(Schrecker, 2016). this was based on classical VS mercantilist this is because there was a minatory aspect related to the trading activities. On the other hand, the productivity of labour has also been affected as most of the parts were the technical terms needed by the US. thisis less useful in the labour-intensive techniques in the developed countries. It was the tariffs which have created the trade war issue between the countries or ultimately the liberalization
There is a higher relation between the first aspect and the second aspect. The use of technology has reduced the productivity of labour. Thus, there are dissimilarities in the income as there are no proper means to deal with the labour and capital requirements. There has been a decrease in the income level as the countries collaborate according to the requirements. There are no protections for the labours from being underminedindependently (Antras et al, 2017). The companies thought of investing in technology is the new trend. There are fewer tariffs on the export and import activities which are allowing the companies to frequently move. There is always a better approach to fur the companies when they involve developing countries because they get a lower level of labour rate(Ravallion, 2018). Thus, the countries might find it difficult to indulge in the companies that are not able to provide satisfactory income to the labours. This could be the base for the deglobalization as there is a requirement for the income to raise the standard of living and the growth of the country too(Iosifidiand Mylonidis, 2017). Both the first and second parts are closely related as there is larger globalization with less concern for the companies.
Conclusion
Thud it could be said that there is a greater impact of the globalisation and liberalisation on the countries. Gradually, they are becoming the reason for the wars and part of the major discussion in the emerging economies. There could be a significant impact of technology on the productivity of labours. There could be more and things related to the economy and it has its impact on the economy. It is directed to have control over the tariffs and the motive to build the nation's economy which could be possible by better collaboration.
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Place Your OrderReference list
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Book
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Lechner, F.J. and Boli, J., 2019. The globalization reader. US: John Wiley & Sons.
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Journals
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Antras, P., De Gortari, A. and Itskhoki, O., 2017. Globalization, inequality and welfare. Journal of International Economics, 108, pp.387-412.
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Brenner, N., 2017. Beyond state-centrism? Space, territoriality, and geographical scale in globalization studies. In Theory and Methods (pp. 313-336). Routledge.
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Cabral, R., García-Díaz, R. and Mollick, A.V., 2016. Does globalization affect top income inequality?. Journal of Policy Modeling, 38(5), pp.916-940.
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Galbraith, J.K., 2016. Globalization and inequality revisited. Argumenta OeconomicaCracoviensia, (15), pp.9-19.
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Helpman, E., 2016. Globalization and wage inequality (No. w22944). National Bureau of Economic Research.
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Iosifidi, M. and Mylonidis, N., 2017. Relative effective taxation and income inequality: Evidence from OECD countries. Journal of European Social Policy, 27(1), pp.57-76.
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Kanbur, R., 2015. Globalization and inequality. In Handbook of income distribution (Vol. 2, pp. 1845-1881). Elsevier.
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Ravallion, M., 2018. Inequality and globalization: A review essay. Journal of Economic Literature, 56(2), pp.620-42.
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Rodrik, D., 2018. Populism and the Economics of Globalization. Journal of International Business Policy, 1(1-2), pp.12-33.
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Schrecker, T., 2016. Globalization, austerity and health equity politics: taming the inequality machine, and why it matters. Critical Public Health, 26(1), pp.4-13.
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Stijepic, D., 2017. Globalization, Worker Mobility and Wage Inequality. Review of International Economics, 25(1), pp.108-131.
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Stockhammer, E., 2015. Rising inequality as a cause of the present crisis. Cambridge Journal of Economics, 39(3), pp.935-958.
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