Global Trade and Finance Australia 2022

Running head: GLOBAL TRADE AND FINANCE
Global Trade and Finance
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GLOBAL TRADE AND FINANCE1
Introduction
The interconnected between the countries around increased due to the globalization. The
trade related to goods and services brings some environmental and social consequences.
Therefore, the relationship between the trade and environmental policy is vital. The impact of the
globalization spread beyond the international trade. As the connectivity between the countries
shoot up because of the globalization, it generates some advantages as well as disadvantages for
the countries. One of the major economies of the world Australia faced some challenges while
maintaining the global environmental and trade problems (Abc.net.au, 2019). The main
environmental problems arises from the emissions of greenhouse gases like CO2, which affects
the climate worldwide. However, the trade results in growth of the GDP per capita and makes the
country richer. Though, it is bad from environmental perspective, it also provides the country
adequate capital to protect the environment in the long run.
Body
The trade and environment is interconnected and national trade policy plays an important
role in this regard. Moreover, the domestic environmental laws also promotes the effective
enforcement of the trade-related environmental challenges such as controlling emission of
greenhouse gas emissions and protecting the ozone layers. In this context, to promote the
international trade without disturbing the environmental balances, the government of Australia is
negotiated free trade agreements and Trans Pacific Partnership agreement. It will scale up the
environmental standards of participating countries along with trade and economic integration. On
the contrary, there are some limitations in controlling the environmental issues alone with the
national policies. Moreover, in some cases, it able to establish a connection to control
environmental issues with the help of national trade policy. National trade policies may expand

GLOBAL TRADE AND FINANCE2
and flourish green business. In addition, national trade policy may promote economic
efficiencies and environmental conservation. It also helps to access the clean technologies at a
lower cost. Therefore, it can be stated that in some way national trade and environment policy
may interact.
Globalization boosts the increased communication and awareness of business
opportunities by interconnecting markets. Some important contributions of the globalization
include technology, innovation and efficiency (Le, Chang & Park, 2016). Thus, globalization has
a further outreach than international trade. Innovation and technology empowers efficient
environment for the global trade. Other than technology, globalization also enables the transfers
of information with the help of internet in the digital era. The absence of the globalization will be
unable to provide the people with things that they required or desired. Additionally, globalization
also fosters economic growth by creating huge employment opportunities. Thus, it can be
considered as the one of the essential factor that establish the outreach of the globalization
beyond the international trade. It also helps the consumers by offering comparatively lower
prices, which scale up the well-being of the consumers. The most pivotal role of the
globalization other than international trade is socialization. It ensures peoples of different
countries to be socially open and tolerant. It also promotes cultural intermingling between
different countries of the world.
There are certain ways by which environmental policies can be implemented in the
context of trade. Some types of environmental policies measures may also intersect with WTO
rules (Wto.org, 2020). These are sustainable procurement practices, intellectual property rights
measures and support schemes for clean technologies. Other than WTO rules, the environmental
policy measures such as the single-use plastic ban also can be implemented in the context of