International Trade and Finance from monicadennis's blog

In the modern world, international trade has an important role. It is developing, and some changes are natural for this process. This paper investigates the main features of modern international trade and finance.

To understand the global trade, it is necessary to examine the world economy and the origins of globalization first. It is usually considered that the latter appeared long ago, with the first development of international relations and trade. The global economy is always changing, and trends change during different periods. In particular, from the early 1990s up to the crisis of 2008-2009, the world economy grew by 3.7 percent per annum in average, and the global trade was growing even faster — by 7.1 percent annually. It can be stated that globalization was increasing rapidly by the crisis, and it led to global growth of the market for labor and other resources. Many countries benefited from that and received high levels of economic growth. After the crisis, the situation with economic growth changed, and some expectations were present. It was expected that investments and capital accumulation would be depressed. In addition, financial positions of some countries began sinking, and it led to further problems. Thus, economic policies can be changed to make them oriented on moderate growth, stability, and recovery from the crisis.

There are several important trends in the current state of globalization. The first one is the rapid development of technologies and transportation systems. It allows making international trade easier via fast and convenient transportation, and new technologies can be used in international trading for goods and services. Moreover, it became easier for businesses from different countries to communicate. The second significant trend is liberalization of international trade policies that makes increasing trade volumes easy. The third trend is growing economic, political, and social inequality among different countries. The fourth trend is increasing income inequality within one country. Finally, an important trend is the growing role of MNCs in the global economy and trade.

Some predictions can be made concerning the future of international trade and its development. It is considered that multilateral trade will become more developed and spread in the world, and WTO, as well as other international organizations, will assist in its development. One more trend that is predicted to occur in the international trade is the change in its structure. It is already obvious that in international trade, most items grow in their volume, but the most significant growth is noticed for the goods and services that require a high level of technological development, such as electronics and high technology products. Such trends in structure changes are expected to continue, and imbalance between different countries will grow as well. In general, there are three theoretical perspectives of globalization. The hyperglobalist perspective argues that nations will become united in the nearest future in order to succeed in internationalized world. The skeptical one states that globalization processes make countries not equal, and they are in fact separated and based on several regions. Thus, some powerful countries will regulate the rest of the world in terms of globalization, and it will become equal for all countries gradually. The transformationalist viewpoint states that globalization is a unique phenomenon that slowly develops, and it is impossible to predict exactly its future state.

In conclusion, globalization and development of international trade are vital in the modern economy, and their trends varied during different periods. Currently, such trends as transportation and technology development, growing inequality among countries, and growing income inequality within each country characterize globalization. Its future is not clear, and each theoretical perspective has its own position.

About author 

Monica is the author at She always dreamed of working in this position, working with texts and new information. After all, her credo in life is to develop daily in different fields and be an interesting person. She is fluent in three languages and holds a Masters Degree in Philology and Translator, and is also trying to master new fields in order to be knowledgeable in everything.

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By monicadennis
Added May 6



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